SimCorp Annual Report 2021
Consolidated financial statements
Section 3
79
3.2 Share based remuneration (continued)
program. The company will allot 1,697
treasury shares after publication of the
Annual Report to members of the Board of
Directors (2020: 2,587 treasury shares).
(2020: 22,687), 228 RSUs were granted to
are not included in the specification on the
next page.
retention programs for senior employees in
EMEA, North America, and APAC. The fair
value of these RSUs amounted to EUR
1.9m. The RSUs will vest after three years,
subject to continued employment.
Furthermore, the RSUs are subject to
conditions with respect to average annual
minimum business growth for the respec-
tive business units and to annual average
net operating profit after tax for the Group
for the financial years 2021 to 2023. If the
two conditions are only partially satisfied,
the number of shares transferred after
three years will be reduced, and may
possibly lapse completely.
employee elected members of the Board of
Directors (2020: 156) and 19,991 RSUs were
granted to other employees (2020: 25,374).
Fair value at grant date was EUR 4.3m
(2020: EUR 4.7m), and EUR 1.1m was
charged to the income statement for 2021
(2020: EUR 0.8m).
Other incentive programs
RSUs with particular vesting conditions are
occasionally granted to key personnel upon
hiring as a part of a sign-on agreement,
special performance incentives, or similar
incentives. A short description of particular
vesting conditions is provided below. Other
share-based payment plans not described
below, are, individually and in aꢁregate,
immaterial to our consolidated financial
statements.
Restricted stock units (RSUs)
The Group grants RSUs to its employees
and Executive Management Board (EMB) as
part of its three incentive programs: long-
term incentive program, corporate bonus,
and special retention programs. The table
which follows on the next page shows a
summary of changes in the balance of
outstanding RSUs from January 1, 2020 to
December 31, 2021.
Corporate bonus program
The annual corporate bonus program is
linked to two key financial metrics:
business growth and Group EBIT.
Employees have the following options:
receive the year’s corporate bonus in cash;
or waive their corporate cash bonus and
elect to receive RSUs at a discount of 67%.
Based on the waived bonus amount, the
company grants RSUs to employees of the
Parent company and its foreign
subsidiaries. One third of these RSUs vest
after one year, a further one third after two
years, and the remaining third after three
years, subject to continuing employment.
Granted 2021
CEO and CFO retention programs
Long-term incentive program
Furthermore during 2021, 3,502 RSUs were
granted to senior employees in the Group
as part of sign-on agreements and
incentive programs. Fair value at grant date
was EUR 0.4m. The RSUs will vest after
three years subject to continued employ-
ment and certain performance conditions
for the financial years 2021 to 2023.
RSUs are granted annually to members of
the EMB and key employees as part of the
long-term incentive program. These vest
three years after being granted subject to
continuing employment and conditions
with respect to average annual minimum
business growth and net operating profit
after tax for the three consecutive financial
years, including the year of grant. If the two
last conditions are only partially satisfied,
the undertaking with respect to the
11,562 RSUs were granted to Christian
Kromann in connection with his appointment
as CEO and 5,781 RSUs to Michael Rosenvold,
CFO as part of a retention incentive. The
fair value of these RSUs amounted to EUR
2.0m. The RSUs will vest 1/3 after three
years, 1/3 after four years and 1/3 after five
years conditional upon continued service
and an increased investment in SimCorp
shares by Christian Kromann of DKK 5m,
and by Michael Rosenvold of DKK 2.5m, both
to be completed by end of August 2023.
In 2021, 61,609 RSUs were granted including
461 RSUs to employee elected members of
the Board of Directors. Fair value at grant
date was EUR 6.7m (2020: EUR 7.1m). EUR
1.6m was charged to the income statement
for 2021 (2020: EUR 1.7m).
Vested 2021
In 2021, 4,052 RSUs related to other
incentive programs vested. 2,390 RSUs
granted to Michael Rosenvold in
connection with his appointment as CFO in
2017, and 1,662 to other senior employees.
number of shares transferred after three
years is reduced (performance adjustment)
and may possibly lapse completely.
In addition, 1,466 RSUs related to LTIP 2021
were granted to Christian Kromann in
connection with his appointment as CEO.
Upon resignation employees forgo all
unvested RSUs. These are reported as
canceled. In 2021, 21,459 RSUs were
granted to Executive Management Board
In March 2022, the company will grant
RSUs as part of its corporate bonus for
2021. EUR 1.7m was charged to the income
statement in 2021 (2020: EUR 1.4m). These
Canceled 2021
13,569 RSUs were canceled due to
employees discontinuing their employment
with SimCorp in 2021.
Regional retention programs
17,038 RSUs were granted for regional
