Mowi execs exercise share options

Published on
June 23, 2020

Participants in Mowi’s senior executive share option scheme this week exercised 1,022,084 options in the salmon farming company, corresponding to 1,022,084 shares at a strike price of NOK 119.84 (USD 12.57, EUR 11.13) per share. 

In a statement filed with the Oslo Stock Exchange, Bergen, Norway-headquartered Mowi purchased 1,022,084 own shares at a price of NOK 179.17 (USD 18.79, EUR 16.65) per share to settle its obligation to deliver the shares. The shares were purchased in accordance with the authorization granted at the annual general meeting on 3 June.

Following these transactions Mowi still holds zero treasury shares.

Options exercised by primary insiders at the price of NOK 119.84 included: CEO Ivan Vindheim with 118,648 options in Mowi; COO Farming Scotland and Ireland Ben Hadfield with 101,112 options; COO Farming Americas and Faroes Per-Roar Gjerde with 61,887 options; and COO Sales and Marketing Ola Brattvoll with 86,985 options.

According to the statement, on 22 June, 2020, these primary insiders "transferred their rights to receive shares resulting from the exercise of their options to a third party against a consideration to be determined on the basis of the price subsequently obtained by the third party when selling the shares. The price subsequently obtained was NOK 179.17 per share."

After exercising the options, the aforementioned primary insiders hold the following number of shares and unexercised options in Mowi: Vindheim – 7,248 shares and 334,908 unexercised options; Hadfield – 7,458 shares and 334,908 unexercised options; Gjerde – 911 shares and 334,908 unexercised options; and Brattvoll – 9,819 shares and 334,908 unexercised options.

Mowi said that the option scheme forms an important part of its long-term remuneration policy for senior executives. The number of options is adjusted for dividend payments and reduced if the profit through exercise of options in a year exceeds two times the fixed annual salary of the option holder.

Last month, Mowi reported that increased costs and lower volumes led to reduced first-quarter operational earnings before interest and taxes (EBIT) of EUR 109 million (USD 123 million), representing a decline of EUR 87 million (USD 98.2 million) on Q1 2019. It also posted lower operational revenues of EUR 885 million (USD 998.8 million), down from EUR 979 million (USD 1.1 billion) a year previously, while the total harvest fell by almost 21,000 metric tons (MT) but remained in line with guidance at 83,119 MT gutted weight.

Of this volume, Norway contributed 50,492 MT, Scotland – 9,036 MT, Canada – 8,066 MT, Chile – 13,669 MT, and the Faroe Islands – 1,851 MT. No salmon were harvested in Ireland in the quarter.

Its harvest guidance for the full-year 2020 is 450,000 MT.  

Contributing Editor reporting from London, UK

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