The Annual General Meeting confirms the compensation of Board members annually. The Board of Directors confirms the CEO's salaries and other benefits. The Company's Board of Directors decides on incentive bonuses for the company's President and CEO. Members of the Board of Directors are compensated only based on Board membership and committee work.
According to the decision of the Annual General Meeting held on June 24th of 2020, the members of the Board of Directors are paid an annual fee of EUR 10,000 and the Chairman of the Board EUR 12,500, and an attendance remuneration of EUR 600 per each meeting for the Board and the Committees, and that the members of the Board are compensated for their travel expenses.
Circa 40 per cent of the annual remunerations will be paid with the shares of the company. Transfer to the shares is made by using the average share price of Neo Industrial Plc’s B-share in May 2020 and the shares will be handed over in June 2021.
In addition, members of the Board will be paid a bonus based on the development of the company's B-share price. For the Chairman of the board it is EUR 1,000 and EUR 500 for the members of the Board, multiplied by annual return based on the price development of Neo Industrial Plc's class B share (average share price in May 2021 - average share price in May 2020). Should the annual return exceed 50 percent, the bonus shall be paid in the accordance with 50 percent.
Circa 40 per cent of the bonuses will be paid with the shares of the company. Conversion into the shares will be carried out based on the average share price of the Company’s class B share in May 2021, and the shares will be handed over in June 2021.
The Management does not have any bonus system in Neo Industrial. The Managing Director acts also as Managing Director of Reka Cables Ltd and is included in its bonus system.
For the time being, the company has no share-based or equity-rewarded remuneration schemes.