Investor Presentaiton
nuuday
Management review Financial statements Section 1
Section 2
Section 3
Section 4
Section 5 Section 6
Parent company
Statements
6.1| Incentive programmes
In order to support the delivery of short-
and long-term financial results, the
Group has both short- and long-term in-
centive programmes for executives and
managers.
Short-term incentive programmes (STI)
The short-term bonus programmes are
closely linked to our strategy. The per-
formance measures are focused on
EBITDA, dividend capacity and Net Pro-
moter Score.
Bonus payments are calculated as the
individual employee's basic salary multi-
plied by the bonus percentage multiplied
by the degree of target fulfilment.
The bonus percentage for members
of the Executive Committee is usually
25-50%. For other managers, the bonus
percentage varies within a range of 10%-
33%. The target fulfilment can be maxi-
mum 200%.
Long-Term Incentive programme (LTI)
The LTI programme is cash based and its
objectives are linked to the long-term
strategy. The programme is revolving
with grants given each year but with a 2
or 3-year vesting period, as the goals
are principally set for a 2 or 3-year
period. The objectives are EBITDA, cash
flow, fibre connection performance, divi-
dend capacity and Net Promoter Score.
The expenses are recognised over the
vesting period.
Bonus payments are calculated as the
individual employee's basic salary multi-
plied by a LTI percentage multiplied by
the degree of target fulfilment.
The LTI percentage usually varies within
a range of 12%-36%. The target fulfilment
can be maximum 200%.
Management incentive programme (MIP)
In July 2020, the parent company TDC
Holding A/S established a new cash-
based incentive programme which in-
cludes the Executive Committee and
certain key managers of Nuuday. In total
15 managers are participating the MIP
programme. Under the MIP, the partici-
pants are required to place a deposit to
TDC Holding A/S to qualify for a return.
The payback amounts are based on the
development in certain financial perfor-
mance measures of the TDC Holding
group as well as certain business and
Health & Safety KPIs over the period un-
til 2023. The investment programme co-
vers the time period 2019-2023. The par-
ticipants have 40% of the deposits at risk
of being lost in downside scenarios and
the expected range of payouts are at
2x-4x the participants' deposit. The
Nuuday participants' total deposits
amount to DKK 13m and the expenses for
2022 relating to the programme
amounted to DKK 11m (2021: DKK 2m). At
31 December 2022 the total liabilities re-
lated to the management incentive pro-
gramme amounted to DKK 30m (2021:
DKK 18m)
Nuuday Annual Report 2022
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