Share-based payment was introduced as part of the IPO on SIX on 29 April 2021. Eligible members of the Board of Directors and the Executive Committee as well as other eligible employees and a former Director of PolyPeptide Laboratories Holding B.V. were granted shares at an amount of kEUR 2,998 which vested immediately upon the listing. As a result, the amount was recognized as an expense in the income statement.
In addition, at least half of the base fee to members of the Board of Directors is paid in shares in the Company and the remainder in cash, whereby board members have the option to elect to be paid up to 100% of their base fee in shares. For board members electing to receive more than 50% of their base fee in shares, the shares exceeding the 50% portion will be granted at a discount of 20% to market price. For the current period (i.e. until the annual shareholders' meeting in 2022), the Board of Directors are compensated on a pro-rata basis for the period of service even in the case of early termination or removal.
An amount of kEUR 415 has been recognized as an expense in the income statement for the six months ended 30 June 2021 relating to the share-based payment to members of the Board of Directors.
Furthermore, as compensation for the loss of unvested options from his previous employer, CEO Raymond de Vré was granted a one-time grant of shares at a value of CHF 750,000 which was calculated at a 20% discount to the IPO offer price of CHF 64. The shares are vesting over a period of three years, one-third each year. The shares are entitled to dividends, if any, also during the vesting period.
To further compensate Raymond de Vré for his loss of variable payments for 2020 and 2021, he has been granted CHF 100,000 in shares at 15% discount to the IPO offer price of CHF 64 vesting at the end of June 2022. An amount of kEUR 152 has been recognized as an expense in the income statement for the six months ended 30 June 2021 relating to the shares granted to Raymond de Vré.