#Sweden #Integrum AB #Mölndal #Scott Flora #compensation package

Integrum Introduces New Compensation Structure for Acting CEO

Integrum AB, listed on the Nasdaq First North Growth Market under the ticker INTEG B, has announced the rollout of a new compensation package tailored for its Board Director and Acting CEO, Scott Flora. This decision comes at a pivotal time for the company as it embarks on a major strategic shift aimed at enhancing performance and executive stability.

Kristofer Westergren, a Board Director at Integrum, noted that the transition period is crucial for assuring both stability and focused growth within the executive team. As the search for a permanent CEO continues, the revised agreement with Scott Flora is designed to maintain a trajectory of progress and stability during this transition phase.

Performance-Based Incentive Program

The heart of the new compensation structure is an incentive program based on Stock Appreciation Rights (SARs). Scott Flora has been granted a total of 200,000 SARs, each linked to the company’s stock performance. The mechanism allows him to receive compensation tied to Integrum's stock price, with a ceiling set at SEK 60 upon exercising the rights. The stipulated exercise price for each SAR stands at SEK 29.30.

The SARs are set to vest progressively, with a schedule that allows for 20% of the rights to vest every three months, commencing from June 1, 2025. It is essential to note that any unvested SARs will unfortunately become void and will not entitle Flora to any payout. Once vested, the SARs will be available for exercise between September 1, 2026, and October 31, 2026. Integrum has the discretion to settle the SAR payments either in shares or cash, further underscoring the company's commitment to performance alignment.

In conjunction with the launch of this incentive program, Integrum will be reducing Scott Flora’s fixed compensation. This adjustment adheres to the compensation guidelines established in the latest shareholders' meeting, reinforcing the commitment to responsible and performance-oriented executive remuneration.

Strategic Context and Company Direction

Integrum is navigating through a transformative phase, which makes the timing and the structure of the new compensation package particularly strategic. By incentivizing performance and linking compensation directly to the company's success, Integrum aims to rally executive leadership and drive forward its strategic objectives—the ongoing recruitment of a permanent CEO further emphasizes the organization’s commitment to strengthening its leadership at the top.

The board's decision to revamp Flora's compensation highlights the evolving landscape of corporate responsibility and governance, especially in times of significant organizational change. The focus on performance-driven incentives reflects a broader trend among corporations striving to enhance accountability and align executive interests with shareholder value.

For additional information regarding this newly implemented compensation structure, stakeholders and interested parties can contact Jörgen Svanström, CFO of Integrum, at +46 (0) 70 734 96 60 or via email at [email protected]. The company's Certified Adviser, Carnegie Investment Bank AB, is also available to provide guidance as necessary.

As Integrum progresses through this strategic transition, the impact of the new compensation framework is expected to play an instrumental role in fostering a culture of accountability and performance, setting the stage for sustained growth and success as it positions itself for future opportunities.