TORM plc Long-Term Incentive Program
In accordance with TORM plc’s (“TORM”) Remuneration Policy adopted by the Annual General Meeting of
TORM plc on 14 April 2021, the Board of Directors has as part of a long-term incentive program decided to grant certain employees (the “Participants”) Restricted Share Units (“RSUs”) in the form of restricted stock options. The RSUs aim at
incentivizing the Participants to seek to improve the performance of TORM and thereby the TORM share price for the mutual benefit of themselves and the shareholders of TORM.
For 2022, the Participants will be granted a total of 1,137,770 RSUs and, subject to vesting, each
RSU will entitle the holder to acquire one TORM A-share. The RSUs will vest over a three-year period, with one third of the grant amount vesting at each anniversary during the three-year period starting on 01 January 2023. The exercise price for each
TORM A-share is DKK 58.0, corresponding to the average of 90 calendar days preceding the publication of TORM plc’s Q4 2021 release plus a 15% premium. Vested RSUs may be exercised for a period of 360 days from each vesting date.
In addition to the RSUs granted to the Participants, Executive Director Jacob Meldgaard will be
granted a total of 255,200 RSUs on similar terms as outlined above.
Holders of the RSUs will have no rights as a shareholder with respect to such RSUs until such time
as the RSUs vest and are exercised and TORM A-shares are issued. The RSUs include certain adjustment and acceleration provisions, exercise conditions and other terms customary for restricted stock option programs of this nature.
The theoretical market value of the RSU allocation is calculated at USD 2.7m based on the
Black-Scholes model. The key assumptions for the calculation of the market value are:
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The strike price is adjusted for future TORM dividends
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The volatility of the TORM share is estimated at 40%
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The risk-free interest rate based upon expiry of the RSUs is based on Danish government bonds with maturity corresponding to the maturity of the
individual RSUs. The interest rate ranges from -0.42% to 0.07% depending on timing of vesting
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A share price of DKK 57.4 per A-share at the time of allocation
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The RSU allocation is expected to affect the P&L statement as follows:
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In USDm (rounded)
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2022
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2023
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2024
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Total
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Total
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1.5
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0.8
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0.4
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2.7
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Contacts
Jacob Meldgaard, Executive Director, tel.: +45 3917 9200
Kim Balle, Chief Financial Officer, tel.: +45 3917 9200
Andreas Abildgaard-Hein, IR, tel.: +45 3917 9339
About TORM
TORM is one of the world’s leading carriers of refined oil products. TORM operates a fleet of
approximately 80 modern vessels with a strong commitment to safety, environmental responsibility and customer service. TORM was founded in 1889 and conducts business worldwide. TORM’s shares are listed on Nasdaq in Copenhagen and on Nasdaq in New
York (ticker: TRMD A and TRMD, ISIN: GB00BZ3CNK81). For further information, please visit www.torm.com.
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TORM PLC | BIRCHIN COURT, 20 BIRCHIN LANE
LONDON, EC3V 9DU, UNITED KINGDOM | COMPANY: 09818726
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COMPANY ANNOUNCEMENT NO.09
23 MARCH 2022
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PAGE 1 / 2
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Safe harbor statement as to the future
This announcement may contain forward-looking statements, including ‘forward-looking statements’
within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as “will”, “aim”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, “projects”, “forecasts”, “may”, “should”, or the negative of
these terms and other similar expressions of future performance or results, and their negatives, are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding
anticipated developments and other factors affecting the Company. They are not historical facts, nor are they guarantees of future performance.
Where the Company expresses an expectation or belief as to future events or results, such
expectation or belief is expressed in good faith and believed to have a reasonable basis. However, because these forward-looking statements are not guarantees of future performance and involve risks and uncertainties, there are important factors
that could cause actual results to differ materially from those expressed, projected or implied by these forward-looking statements. In light of these risks and uncertainties, undue reliance should not be placed on forward-looking statements
contained in this release because they are statements about events that are not certain to occur as described or at all.
Except to the extent required by applicable law or regulation, the Company undertakes no obligation
to release publicly any revisions or updates to these forward-looking statements to reflect new information future events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Please see TORM’s filings
with the U.S. Securities and Exchange Commission for a more complete discussion of certain of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and the Company disclaims any intention or
obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.
