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EANS-News: OMV Aktiengesellschaft
Report pursuant to section 65 para 1b in conjunction with sections 171 para 1 and 153 para 4 Stock Corporation Act

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Capital measures/ OMV / Austria / oil / gas

OMV Aktiengesellschaft
Corporate register number: 93363z
ISIN: AT 0000743059

  
Please note:
This report is legally required in order to be able to transfer shares under the
long-term, performance based incentive and compensation programs to employees
and managers within OMV Group. Please be aware that the numbers of shares in
this document are maximum amounts. The actual number of shares to be transferred
depends on the achievement of different criteria, may be significantly smaller
and in particular is subject to a separate resolution by the Supervisory Board
of OMV Aktiengesellschaft.
 

 Report pursuant to section 65 para 1b in conjunction with sections 171 para 1
                      and 153 para 4 Stock Corporation Act

 
The Executive Board of OMV Aktiengesellschaft ("OMV" or "Company") has been
authorized by resolution of the Annual General Meeting of the Company held on
May 17, 2011, subject to the approval of the Supervisory Board but not to any
further resolution of the General Meeting, to dispose of or utilize within five
years of the adoption of the resolution, treasury shares in the Company also by
other means than via stock exchange or public offering, in particular to satisfy
stock options or long-term incentive plans for employees, senior employees and
members of the Company's Executive Board or the management boards of its
affiliates, or other employee stock ownership plans and for any other legal
purpose.

The Executive Board and the Supervisory Board of OMV intend to make use of such
authorization and to resolve upon an allocation of up to a maximum of 320,380
(for current and former members of the Executive Board), a maximum of 525,404
(for other senior executives) and a maximum of 26,320 (for Potentials) treasury
shares in the Company under the Long Term Incentive Plan 2012 (LTIP 2012), which
was approved by the Annual General Meeting of the Company on May 10, 2012, and
under the Matching Share Plan 2014 (MSP 2014), which was approved by the Annual
General Meeting of the Company on May 14, 2014,  to members of the Executive
Board and senior executives of the OMV Group. The actual number of shares to be
transferred is subject to performance, depends on the resolution of the
Supervisory Board of OMV Aktiengesellschaft and will be published separately.
The Executive Board and the Supervisory Board of OMV Aktiengesellschaft,
represented by the Remuneration Committee, therefore report as follows.
 
                                  R E P O R T:
 
1.  Long Term Incentive Plan 2012

Plan purpose and objectives

The Long Term Incentive Plan (LTIP) 2012 is a performance based and long-term
compensation instrument for the Executive Board, selected senior managers and
other employees of OMV Group that promotes mid- and long-term value creation at
OMV and aligns the interests of management and shareholders by providing
management with the possibility to receive shares in the Company subject to
performance (measured against key indicators linked to the medium-term strategy
and shareholder return). The plan also seeks to prevent unnecessary risk-taking.
The defined performance criteria must not be amended during the performance
period of the LTIP 2012.

Eligibility

Executive Board members are obliged to participate. Selected senior managers of
OMV Group may participate in the LTIP 2012. Other employees of OMV Group that
have been nominated via the Career & Succession Planning process ("Potentials")
may also participate in the LTIP 2012.
The nomination of senior managers to the LTIP by the Executive Board of OMV
Aktiengesellschaft is taking place annually and potential share transfers are
based on the performance level of the respective senior manager in the
respective year and may be granted in the amount of 0%, 25%, 50% or 75% level
for the respective year.

Personal share ownership rules

There is no requirement for an upfront investment in OMV shares to participate
in the LTIP 2012. However, Executive Board members and senior managers are
required to build up an appropriate volume of shares in the Company and to hold
these shares until retirement or leaving the Company. The shareholding
requirement is defined as a percentage of the annual gross base salary (14 times
(i) the January gross base salary or (ii) the gross base salary for the first
month as participant in the LTIP 2012):

* CEO: 200%
* Deputy CEO: 175%
* Other Executive Board members: 150%
* Senior managers: 75%

Executive Board members must achieve the required shareholding within 5 years
after the start of their respective current contract as Executive Board member.
 
Basis for the calculation of the respective number of required shares is the
average share price over the 3-month period 1 January 2012 - 31 March 2012 (=
average of closing prices at Vienna Stock Exchange). Once the above percentage
has been reached, subsequent changes in the share price do not influence the
number of shares required. In case and to the extent of a salary increase of
Executive Board members the number of required shares has to be adapted.
 
Shares granted to Executive Board members under the Matching Share Plan (MSP)
2014 or to be vested to Executive Board members under the LTIP 2012 as well as
investments made for previous LTIPs count towards this shareholding requirement.
 
Dividends for the required shares held, if any, are paid out in cash. Senior
managers are not obliged to hold shares if the holding of the Company's shares
is prohibited by law in the countries where the respective senior managers work.

Grant levels

The maximum number of shares granted under the LTIP 2012 is expressed as a
percentage of the annual gross base salary:

* 175% for the CEO
* 150% for the Deputy CEO
* 125% for other Executive Board members
* 112.5% for senior managers

 
In case the respective Executive Board member is appointed later than 1 January
2012, the grant for 2012 is calculated on a pro rata basis. The same applies for
an exit during 2012. The allocation is made by the Supervisory Board or the
Remuneration Committee of the Supervisory Board.

Plan mechanisms

The maximum number of shares to be granted to the participant at the Vesting
Date shall be calculated as follows: The relevant percentage for each
participant (as mentioned above) divided by OMV's average share price (= closing
price at the Vienna Stock Exchange) over the 3-month period 1 January 2012 to 31
March 2012. The number of shares will be rounded down. Before the Vesting Date
the potential shares are "virtual", i.e. the participants do not hold these
shares and have no voting or dividend rights. On the Vesting Date, the definite
number of shares shall be determined based on the achievement of the performance
criteria and then transferred to the participant.

The final number of shares is calculated by multiplying the maximum grant of
shares with the overall percentage of performance achievement.

Performance criteria and weightings

The performance criteria focus on sustained value creation across three areas of
performance:

* 45%: Total Shareholder Return relative to a group of peer companies
* 45%: Absolute reported Return on Average Capital Employed,adjusted for
  acquisitions averaged over the three year performance period
* 10%: Sustainability element: Absolute "Safety Performance"
  The value of the performance is based on the basis of findings, hazards & near
  miss (FH&NM) reporting per employee (average 3 years target; without office
  employees) to improve risk mitigation, loss prevention and general HSSE
  awareness
 
In 2012, the specific performance targets were set for the performance period
(January 1, 2012 until December 31, 2014) and communicated to plan participants.
It is not allowed to modify the performance criteria thereafter.

Share transfer/pay-out

To the extent that the shareholding requirement is not fulfilled, the payment
will be automatically made in the form of shares until the requirement is
reached. Otherwise the Executive Board members and senior managers could opt
between (i) single payment in shares, (ii) single payment cash or (iii) cash
payment in instalments. Participants had to make this decision at the latest by
the third quarter of the year the plan started. If such a decision could not be
made due to compliance relevant information, the payment will automatically be
made in cash (single payment). The transfer of shares or cash payment to the
participants is generally made net after deduction of taxes (in Austria payroll
tax deduction).

If the approval of the share transfer has been given by the Supervisory Board on
the Vesting Date or earlier, transfer of the shares to be transferred under the
LTIP 2012 will be executed on the business day following the Vesting Date,
otherwise the transfer takes place with the beginning of the month following the
approval, in each case subject to legal restrictions, if any. The Company does
not cover any share price risk caused by the delay or by the transfer.

If a payment is made in cash, the amount will be calculated by using OMV's
closing price at the Vienna Stock Exchange on the Vesting Date, if this day is
not a business day, then the respective day before.

In case any payment in cash or transfer of shares is based on incorrect data,
the amounts will be corrected accordingly.
 
Rules for leaving participants
·   Bad leavers: Unvested awards are forfeited
·   Good leavers:Unvested awards continue
·   Retirement, permanent disability: Unvested awards continue
·   Death: Unvested awards are valued as per date of death and settled in cash

Change of control (disposal of the Group company where the participant is
employed)

If a change of control in OMV results in the early termination of the
appointment of an Executive Board member, the full amount of the granted award
is paid out in cash immediately, unless such early termination is declared by
the respective Executive Board member (i) without cause or without basis in the
employment contract, in which case the same legal consequences as for bad
leavers apply or (ii) else without the consent of the Supervisory Board in which
case the unvested plans shall continue as for good leavers.

LTIP for Potentials

For the LTIP for Potentials certain deviations from the LTIP as described above
apply. In particular there is no requirement for an own shareholding. The
maximum award for each participating person amounts to EUR 35,000.--. Payment is
made in the form of shares.
 
2.  Matching Share Plan 2014

Plan purpose and objectives

The Matching Share Plan (MSP) 2014, as integral part of the annual bonus
agreement is a long-term incentive and compensation vehicle for the members of
the Executive Board that promotes the attachment to the Company and the
alignment with shareholder interests via a long-term investment in restricted
shares of OMV. The plan also seeks to prevent inadequate risk-taking. The MSP
provides for a transfer of shares which are counted towards the shareholding
requirements under existing and future Long Term Incentive plans until the
requirements are reached (see Vesting/Payout below). All shares to be granted
under the MSP 2014 will be used to fulfill such personal investment and
shareholding requirements under the LTIPs, will be transferred to a trustee
deposit account of the Company and will be subject to a holding period.

Based on the resolution of the Annual General Meeting of the Company held on May
14, 2014, an award of shares will be made to Executive Board members to match
100% of their gross annual cash bonus. The maximum gross annual cash bonus can
amount to 100% of the annual gross base salary and is based on the following
performance criteria: 50% financial targets, 30% production and growth targets,
5% efficiency targets and 15% special projects.
 
The shares granted have to be reduced or have to be returned in the case of a
clawback event. Furthermore, if the shares or cash equivalents were based on
incorrect calculations of the bonus, the Executive Board members are obligated
to return or pay back benefits obtained due to such wrong figures.

The performance criteria defined for the annual bonus must not be amended during
the term of the MSP. However, significant changes in tax, legal and royalty
issues might require target adjustments. A cap of 100% of the base salary is
applicable.

Plan mechanisms

After determination of the annual cash bonus by the Remuneration Committee of
the Supervisory Board, an equivalent matching bonus grant will be made net
(after deduction of taxes) in Company shares which shall be transferred to a
trustee deposit, managed by the Company, to be held for three years. Members of
the Executive Board can choose between cash payment and transfer of shares if
and to the extent that they have already fulfilled the shareholding requirements
for the LTIP 2012 applicable to Executive Board members. Dividends, if any,
earned from the vested shares are paid out to the Executive Board members in
cash.

Determination of number of shares

After determination of the gross annual cash bonus an award of 100% of the gross
annual cash bonus earned in the previous year is made in Company shares. The
number of shares awarded is calculated as follows:

Gross annual cash bonus amount divided by the average closing price for OMV
shares at the Vienna Stock Exchange over the 3-month period November 1, 2014 -
January 31, 2015. The resulting number of shares will be rounded down.
Effective dates and term

· Plan start: January 1, 2014 as an integral part of the annual bonus agreement
· Vesting Date: March 31, 2015, subject to Supervisory Board approval
· Holding period (to the extent applicable): 3 years from vesting

Share transfer/Pay-out

If the approval of the share transfer has been given by the Supervisory Board on
Vesting Date or earlier, transfer of bonus shares will be executed on the
business day following the Vesting Date, otherwise the transfer takes place with
the beginning of the next month following the authorization. The Company does
not cover any share price risk caused by the delay or by transfer.

To the extent that the shareholding requirement under the LTIP 2012 for
Executive Board members is not fulfilled, the payment will, subject to any legal
restrictions, be automatically made in the form of shares (net after tax
deduction) until the requirement is reached. As far as the shareholding
requirement is fulfilled, the payout can be made in cash. The Executive Board
members can then opt for either single payment in shares or single payment in
cash. Executive Board members must make this decision at the latest by the third
quarter of the year the plan starts. If such a decision cannot be made due to
compliance relevant information, the payment will automatically be made in cash.
If the payment is made in cash, the amount will be calculated by using the OMV's
closing price at the Vienna Stock Exchange on Vesting Date, if this day is not a
business day, then the respective day before.

The delivery of shares or cash payment to the participants is made net after
deduction of taxes (payroll tax deduction).

Leaving Executive Board members

The rules outlined above for the LTIP 2012 apply, provided, however, that for
good leavers and in the case of retirement and permanent disability the vesting
of unvested awards remains subject to a decision to be made by the Supervisory
Board in its discretion.

Clawback

Under the following circumstances, the Supervisory Board may reduce the number
of shares vesting under the MSP or may request from the Executive Board members
a retransfer of shares or a repayment of cash payments which have been granted
or made under the MPS:

· Reopening of audited financial statements due to miscalculation
· Material failure of risk management which leads to significant damages (like
  Deep Water Horizon accident, Texas City Refinery accident)
· Serious misconduct of individual Executive Board member which violates 
  Austrian law
 
3.  Number of awardable shares

According to the above mentioned criteria of the LTIP 2012 and the MSP 2014 and
the achievements of the performance criteria the maximum number of bonus shares
awardable to the current and former members of the Executive Board (EB member)
and other senior executives are as below. The actual number of shares to be
transferred is subject to a resolution by the Supervisory Board of OMV and will
be published separately.

(i) Current and former members of the Executive Board:

CEO:                                   92,655
Deputy CEO:                            74,450
EB member, responsible for Upstream:   54,753
EB member, responsible for Downstream: 48,713
Former EB member Hans-Peter Floren:    49,809
 

The numbers of shares mentioned above are gross numbers at maximum performance
achievement level. The actual number of shares to be transferred after
assessment of the actual performance achievement will be a net amount after
deduction of taxes and duties and will be published after the transfer on the
website of OMV under http://www.omv.com/portal/01/com/omv/OMVgroup/
Investor_Relations/OMV_Share/Share_Buybacks_Sales/2015.
 
(ii) Other senior executives and Potentials:
Other senior executives:               525,404
Potentials:                             26,320

The numbers of shares mentioned above are gross numbers at maximum performance
achievement level. The actual number of shares to be transferred after
assessment of the actual performance achievement will be a net amount after
deduction of taxes and duties and will be published after the transfer on the
website of OMV under http://www.omv.com/portal/01/com/omv/OMVgroup/
Investor_Relations/OMV_Share/Share_Buybacks_Sales/2015.
 
4.  Exclusion of shareholders' general possibility to purchase treasury shares

As outlined above, OMV treasury shares shall be granted to the members of the
Executive Board and other senior executives of OMV Group under the Long Term
Incentive Plan 2012 and to Executive Board members under the Matching Share Plan
2014. OMV thereby intends to increase the focus of the participating persons on
the long-term Company value and their identification with the Company. The LTIP
2012 and the MSP 2014 are performance-based and long-term compensation and
incentive instruments which shall promote the mid- and long-term value creation
at OMV, align the interests of the management and shareholders through long-term
investment in shares and minimize risks. For such purpose it is necessary to
exclude, in respect of the treasury shares used for the LTIP 2012 and the MSP
2014, the shareholders' possibility to purchase OMV treasury shares.

The LTIP 2012 was approved by the Annual General Meeting of the Company on May
10, 2012. The MSP 2014 was approved by the Annual General Meeting of the Company
on May 14, 2014.

The interest of the Company prevails over the shareholders' interest in having
an possibility to purchase OMV treasury shares. Taking into account all
circumstances the exclusion of the shareholders' possibility to purchase
treasury shares is necessary, reasonable, appropriate, in the best interest of
the Company and therefore objectively justified.


Vienna, February 2015             The Executive Board and the Supervisory Board

Further inquiry note:
OMV
Investor Relations:
Felix Rüsch
Tel. +43 1 40 440-21600
e-mail:  investor.relations@omv.com

Media Relations:
Johannes Vetter 
Tel. +43 1 40 440-22729
e-mail:  media.relations@omv.com
 
Internet Homepage: http://www.omv.com

end of announcement                               euro adhoc 
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company:     OMV Aktiengesellschaft
             Trabrennstraße  6-8
             A-1020 Wien
phone:       +43 1 40440/21600
FAX:         +43 1 40440/621600
mail:         investor.relations@omv.com
WWW:         http://www.omv.com
sector:      Oil & Gas - Downstream activities
ISIN:        AT0000743059
indexes:     ATX Prime, ATX
stockmarkets: official market: Wien 
language:   English

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