Management Report 2020 slide image

Management Report 2020

" - Management Report 2020 The number and weighted average share option prices under the share option program are as follows: Number of options 12/31/2019 Weighted av- erage of the exercise 12/31/2020 Number of options Weighted average of the exercise 12/31/2020 12/31/2019 Outstanding at January 1 Granted during the period R$30.73 1,737,186 R$39.51 R$20.03 637,450 R$14.23 Exercised during the period R$20.11 (449,725) R$13.87 Canceled during the period Capital stock split Outstanding R$20.33 (225,030) R$20.10 R$30.91 R$25.11 1,699,881 535.962 R$30.73 R$22,45 909,893 1,737,186 550,786 Exercisable 912,673 613,750 (699,130) Options outstanding as of December 31, 2020 have a Strike price in the range of R$ 20.11 to R$ 30.91 (R$ 13.68 to R$ 39.51 as of December 31, 2019). The weighted average stock price on the exercise date for stock options exer- cised in the period ended December 31, 2020 was R$ 25.11 (R$ 22.45 at De- cember 31, 2019). b) Restricted Share Plan In an Extraordinary General Meeting held on April 29, 2015, the Company's shareholders approved a restricted share plan, to be effective as of November 11, 2015, for the Company's officers and managers. The plan is managed by the Management Committee, created by the Board of Directors on May 23, 2007. The total number of Restricted Shares that may be granted annually under the Plan, in the sum of all active Programs, shall not exceed 1% (one percent) of the shares representing the total capital stock of the Company. The beneficiaries of the Restricted Shares Plan shall acquire the rights to the Restricted Shares to the extent that they remain continuously bound as ad- ministrator or employee of the Company or other company under its control, for the period between the Granting Date and the specified dates. The vesting SLC Agrícola period is up to 3 years, with releases of 30% from the first anniversary, 60% from the second anniversary and 100% from the third anniversary. Until the rights to the Restricted Shares are fully vested, according to the con- ditions set forth above, the beneficiary may not pledge, sell, assign, dispose or transfer, directly or indirectly, the Restricted Shares. Once the conditions es- tablished are met and provided that the applicable legal and regulatory re- quirements are complied with, including but not limited to obtaining authori- zation from the Brazilian Securities and Exchange Commission for private transfer of shares, the Company will transfer the respective Restricted Shares to the name of the beneficiary, by means of a term of transfer of the Company's registered shares in the system of the agent responsible for the bookkeeping of the shares issued by the Company, at no cost to the beneficiary. At meetings of the Board of Directors held on November 08, 2017, November 13, 2018, November 13, 2019 and November 06,2020, the Restricted Shares Award Programs for 2017, 2018, 2019 and 2020 were approved, with the granting of 93,375 (before the capital split), 48,973 (before the capital split), 153,438 and 159,363 shares, respectively. Quantity of sharess Balance on 12/31/2020 Grant year Fair value at grant (R$)¹ Balance on 12/31/2019 2017 R$ 18.02 2018 R$ 54.60 69,100 67,564 Granted Canceled (7,000) (6,925) Exercised (62,100) (25,976) 34,663 2019 2020 R$ 18.46 R$ 27.20 153,438 (14,925) (41,541) 96,972 159,363 159,363 159,363 (28,850) (129,617) 290,102 290,998 1. The 2017 and 2018 plans have the value of their shares before the capital split. In compliance with CPC 10 (R1), based on the grace periods presented, the amounts with restricted share plans were recognized in the statement of in- come according to the length of the vesting period, with a corresponding entry in shareholders' equity in a specific capital reserve account. In current liabili- ties, in a specific account for labor obligations, the amounts of INSS and FGTS (expenses), as presented below: 141
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