Zealand Pharma launches long-term incentive program for Zealand’s Board of Directors and grants for 2021

Rhea-AI Summary

Zealand Pharma has introduced a new long-term incentive program granting 40,500 restricted stock units (RSUs) to its Board of Directors as per the company's Remuneration Policy established on April 15, 2021. The RSUs will vest at the annual general meeting in 2022, with a maximum of 8,000 RSUs per member valued at DKK 2.4 million. The estimated total value of the RSUs is DKK 8.3 million, based on a fair value of DKK 205 per RSU. This initiative aims to align the interests of the Board with shareholders through a holding requirement of DKK 300,000 over five years.

Positive

• Introduction of long-term incentive program aligns interests of the Board with shareholders.
• Grants valued at DKK 8.3 million could enhance Board commitment.

Negative

• Potential concerns regarding continuity or experience gaps within the Board due to changes.

Company announcement – No. 23 / 2021

Zealand Pharma launches long-term incentive program for Zealand’s Board of Directors and grants for 2021

Copenhagen, DK and Boston, MA, U.S., April 29, 2021 – Zealand Pharma A/S (Nasdaq: ZEAL) (CVR-no. 20045078), a biotechnology company focused on the discovery, development and commercialization of innovative peptide-based medicines, announces the implementation of a new share-based long-term incentive program for Zealand’s Board of Directors in accordance with Zealand's Remuneration Policy as adopted at the annual general meeting held on April 15, 2021. Accordingly, Zealand has granted 40,500 restricted stock units ("RSUs") to the Board of Directors.

To the extent that the Board member holds any additional role as member of Zealand's Audit Committee, Remuneration Committee and/or Scientific Committee, the Board member has received an additional grant of RSUs in accordance with the Remuneration Policy. Such grants are included in the above-mentioned number.

The 2021 RSU grants to the Board of Directors vest on the date of Zealand's annual general meeting 2022. For each member of the Board, there is an upper limit of 8,000 RSUs (with an absolute value cap of DKK 2.4 million) for the grant. Each vested RSU entitles the holder to receive one share in Zealand at no cost, provided the holder's continued membership of the Board (or Board Committee where relevant).

Each member of the Board is subject to a holding requirement to be met within a period of 5 years. The members of the Board of Directors are also subject to a holding requirement to be met within a period of 5 years if they continue to be members of the Board. This is to align interests of the Board and the shareholders. The holding requirement for the members in question amounts to DKK 300,000.

The grant of RSUs for the members of the Board under this program will have an estimated fair market value of DKK 8.3 million, based on each RSU having a fair value of DKK 205. The value of the RSUs is determined as the closing price of the Company's share on Nasdaq Copenhagen A/S the day prior to the grant.

Zealand Pharma A/S

The Board of Directors

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About Zealand Pharma A/S 

Zealand Pharma A/S (Nasdaq: ZEAL) ("Zealand") is a biotechnology company focused on the discovery, development, and commercialization of next generation peptide-based medicines that change the lives of people living with metabolic and gastrointestinal diseases. More than 10 drug candidates invented by Zealand have advanced into clinical development, of which two have reached the market. Zealand’s robust pipeline of investigational medicines includes three candidates in late stage development, and one candidate being reviewed for regulatory approval in the United States. Zealand markets V-Go^®, an all-in-one basal-bolus insulin delivery option for people with diabetes. License collaborations with Boehringer Ingelheim and Alexion Pharmaceuticals create opportunity for more patients to potentially benefit from Zealand-invented peptide therapeutics. Zealand was founded in 1998 in Copenhagen, Denmark, and has presence throughout the U.S. that includes key locations in New York, Boston, and Marlborough (MA). For more information about Zealand’s business and activities, please visit http://www.zealandpharma.com.

Forward-Looking Statement

The above information contains forward-looking statements that provide Zealand Pharma’s expectations or forecasts of future events. Such forward-looking statements are subject to risks, uncertainties and inaccurate assumptions, which may cause actual results to differ materially from expectations set forth herein and may cause any or all of such forward-looking statements to be incorrect. If any or all of such forward-looking statements prove to be incorrect, our actual results could differ materially and adversely from those anticipated or implied by such statements. All such forward-looking statements speak only as of the date of this release and are based on information available to Zealand Pharma as of the date of this release.

For further information, please contact:

Zealand Pharma Investor Relations
Claudia Styslinger
Argot Partners
investors@zealandpharma.com

Zealand Pharma Media Relations
David Rosen
Argot Partners
media@zealandpharma.com

Claudia Styslinger

FAQ

What is the purpose of the new long-term incentive program by Zealand Pharma?

The program aims to align the interests of the Board of Directors with shareholders through stock-based incentives.

How many restricted stock units were granted to Zealand Pharma's Board?

A total of 40,500 restricted stock units (RSUs) were granted to the Board of Directors.

When will the RSUs granted to Zealand Pharma's Board vest?

The RSUs will vest at Zealand Pharma's annual general meeting in 2022.

What is the estimated value of the RSUs granted to Zealand Pharma's Board?

The estimated total value of the RSUs granted is DKK 8.3 million.