#Denmark #RSUs #Hellerup #TORM plc #Jacob Meldgaard

TORM plc's Long Term Incentive Program

On September 23, 2025, TORM plc, operating under the Nasdaq ticker TRMD, announced details of its Long-Term Incentive Program aimed at retaining key talent within the organization. This initiative is guided by the Remuneration Policy adopted at the Annual General Meeting in April 2021 and the authorization provided during the AGM in April 2024.

The company’s Board of Directors has decided to grant restricted share units (RSUs) to select employees and Executive Director Jacob Meldgaard through this program. Specifically, a total of 1,293,434 RSUs will be allocated as part of the Additional Retention Program. Each RSU will eventually allow the holder to purchase one TORM A-share at a nominal strike price of just one cent. The vesting date for all provided RSUs is set for October 1, 2028, signaling TORM's commitment to long-term employee engagement.

In addition, executive director Jacob Meldgaard is set to receive 500,000 RSUs under identical terms. While the holders of these RSUs will not have shareholder rights until they vest, the program includes common provisions related to adjustments and acceleration, typically associated with restricted stock option arrangements.

Financial Implications

The anticipated market value of the RSU allocation is notably significant, assessed by the Black-Scholes model at roughly $40 million. This valuation relies on several key assumptions:
1. The strike price and the number of shares will remain unchanged despite TORM's routine dividend payments.
2. The stock's volatility is estimated to hover around 42.5%, while a risk-free rate is based on the yield of a relevant Danish government bond.
3. At the time of the allocation, the share price stood at DKK 141.25 per A-share.

The financial implications of this RSU allocation are expected to reflect as follows:

• - 2025: $3.6 million
• - 2026: $13.3 million
• - 2027: $13.3 million
• - 2028: $9.7 million
• - Total: $40 million

Moreover, the vesting date for a previous Additional Retention Program granted in March 2023 to the same category of employees has been moved up from March 2026 to November 7, 2025, further underscoring TORM's focus on retaining its critical workforce.

Background on TORM

TORM plc is recognized as a leading global carrier of refined oil products. Founded in 1889, the company's operations center around an extensive fleet of product tanker vessels, emphasizing safety, environmental care, and superior customer service. TORM is publicly listed on both the Copenhagen and New York stock exchanges (Nasdaq ticker TRMD A and TRMD, ISIN GB00BZ3CNK81).

As TORM continues to navigate the complexities of the shipping industry, the implementation of such incentive programs could serve as a catalyst for bolstering employee morale and ensuring the company's longevity in a competitive marketplace. Stay tuned for more updates as TORM progresses with this initiative.

Conclusion

In conclusion, TORM plc's Long-Term Incentive Program appears to be a strategic move aimed at enhancing employee retention and aligning their interests with the company's growth objectives. By leveraging RSUs, TORM is positioning itself to maintain a strong operational framework focused on long-term success and shareholder value.