Better Collective, a leading sports betting media group and developer of iGaming educational platforms, announced a new management incentive plan that will see management personnel and certain key employees in Action Network being awarded if they stay with the company.
Rewarding Employee Loyalty
Designed by the Remuneration Committee and approved by the Board, the new management incentive plan announced by the Board of Better Collective will seek to retain, motivate and reward key management and employee figures in Action Network, as well as to help align interests between Action Network participants and shareholders at Better Collective.
The Board of Better Collective saw the need for a new management incentive plan after the acquisition of Action Network, which made the previous plan obsolete. The new plan will feature financial forecasts for the acquired company based on revenue and EBITDA projections presented as part of the transaction, and will reward a total of 20 employees with a grant of 473,563 performance share units and 201,238 share options.
Participants in the reward program will be offered performance share units that will track the share price of Better Collective on Nasdaq Stockholm from the moment the units are awarded. Upon completing the program, each participant that will continue to work in the Better Collective group will receive one share of Better Collective with a nominal value of €0.01 for every performance share unit.
Share options delivered to certain participants under the management incentive plan will become exercisable upon completion of the program and assuming continued employment in the Better Collective group. Each option will allow the purchase of one share of a nominal value of €0.01 against a payment of an exercise price determined at the day of the grant close settled in cash.
The Management Incentive Plan in Details
The reward scheme will run for three years and has a performance period starting from June 1 and ending December 31, 2024. It is valued at $12 million upon 100% achievement of the plan. Key performance indicators (KPI) will be measured against both revenue and EBITDA projections, each one of them carrying equal weight.
Performance measurement units and share options will be vested in three tranches, one-third in each year, two weeks after the Board’s approval of the audited financial results, expected to happen in February each year.
Following completion of the management incentive plan, participants in the plan will be included in Better Collective’s broader Long Term Incentive Program.
The management incentive plan is not expected to have any dilution effect on stock held by Better Collective shareholders as the company will launch appropriate share buy-back programs to meet its obligations stated under the rewards program.