The board of directors of Better Collective on Friday said the company will implement a new Long Term Incentive Plan (LTI) for key employees in the Better Collective group.
Denmark-based Better Collective is a global sports betting media group that offers betting lines, information and statistics on its proprietary platforms: bettingexpert.com, VegasInsider.com, HLTV.org and Action Network. It has offices in New York, Miami and Nashville, and with its recent move into the New York market it is live in 16 US states and has subscribers from across the country.
Grants under the new LTI will be in the form of performance share units and share options vesting over a three-year period, Better Collective revealed, adding members of the executive management team will not receive any grants.
The LTI has been designed by the company’s Remuneration Committee and approved by the board with the focus to appropriately retain, motivate and reward selected key employees in the Better Collective group.
The board said in a statement the intent is to support “sustainable value creation” for the shareholders as well as “aligning the interests” of participants in the LTI to those of the Better Collective’s shareholders. To achieve this, the LTI provides an opportunity to participate in the value creation of Better Collective by rewarding business performance against selected metrics as well as share price growth.
In total the grants under the LTI in 2022 will cover 71,432 performance share units and 23,221 share options to a total of 35 key employees. Though it is the intention that the program will be revolving with a yearly grant, the size of such grants and the allocation hereof in the following years, will be at the full discretion of the board, it said.
The total value of the 2022 LTI grant program is €1.4m ($1.5m, calculated @Black-Scholes value) if the company achieves 100% of the financial goals. If the financial goals are not met, the value of these grants will be zero.
If exceptional performance above target is achieved on the financial goals, the maximum value of the 2022 LTI grants can reach €2.8m ($3.1m), assuming a constant share price.
The grant value of the program (Black Scholes formula) will be evenly expensed as an employee remuneration cost during the vesting period. The cost will be revalued at each period based on the forecasted performance on the financial KPIs at that time and the expected retention rate of the employees included in the program.
According to Friday’s statement, the LTI will have “no dilutive effect” on Better Collective’s shareholders, as the company intends to initiate share buy-back programs to meet its obligations under the LTI.
Better Collective offers a range of editorial content, bookmaker information, data insights, betting tips, iGaming communities and educational tools. The company is headquartered in Copenhagen, Denmark, and listed on Nasdaq Stockholm.
