Sobi CEO Geoffrey McDonough sells a portion of 2014 incentive shares
During the first week of December 2014 Sobi’s CEO Geoffrey McDonough sold 350,000 of the shares he holds in Sobi. The sale was made in order to cover the estimated US tax liability for both the company’s CEO incentive share programme, which vested in September 2014, and for the vesting in mid-December 2014 of the company’s 2011 long-term incentive programme. This is the first time during his employment at Sobi that the CEO has been awarded shares under the incentive programmes.
“I am totally committed to Sobi and continue to be confident and excited about the company’s future. I have invested fully in each of our long-term incentive programs, including 2014, and continue to own all of the shares I have purchased.” said CEO Geoffrey McDonough.
About the long-term incentive programme
When CEO Geoffrey McDonough assumed his position in 2011 an Extraordinary General Meeting (EGM) Aug 2011 decided on a long-term incentive program for the CEO. The program is described in Sobi’s Annual Report. According to the program, a total of 500,000 performance shares could be allotted after three years, provided that the CEO also invested SEK 4 M in Sobi shares, maintained this investment, remained employed throughout the period and that certain criteria were reached. He initially acquired 166,000 shares in August 2011 and has since then made further acquisitions of shares. The criteria for the allotment were:
- Minimum return to shareholders at least 15 per cent (equivalent to a share price of SEK 25.77)
- 400,000 shares if above SEK 45, with linear pro rata allocation of 0-400,000 shares if share price between SEK 25.77 and SEK 45.00
- An additional 30,000 and 70,000 shares if Sobi share were above SEK 30 and SEK 35 respectively.
As the share was trading at SEK 83.07 in the beginning of August, the program vested in full, providing the CEO with 500,000 shares valued at approximately SEK 42.5 M.
Sobi is an international specialty healthcare company dedicated to rare diseases. Our mission is to develop and deliver innovative therapies and services to improve the lives of patients. The product portfolio is primarily focused on Inflammation and Genetic diseases, with two late stage biological development projects within Haemophilia. We also market a portfolio of specialty and rare disease products for partner companies. Sobi is a pioneer in biotechnology with world-class capabilities in protein biochemistry and biologics manufacturing. In 2013, Sobi had total revenues of SEK 2.2 billion (€253 M) and about 550 employees. The share (STO: SOBI) is listed on NASDAQ OMX Stockholm. More information is available at www.sobi.com.
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