Better Collective AS has published a new management incentive plan correlated to its acquisition of US media subsidiary Action Network.
Last May, Better Collective concluded its biggest M&A transaction to date by agreeing to a $240m deal to acquire Action Network, supporting the publisher’s US media presence.
Better Collective’s Remuneration Committee has agreed to terms on a management incentive plan (MIP) for Action Network’s existing management and a ‘selected number of key employees’.
The firm said in a statement: “The Board has found it important to install a new MIP following the acquisition as the MIP replaces prior incentive programs that lapsed in connection with the recent acquisition of Action Network.”
Updating terms on its M&A, Better Collective has agreed to key performance earnouts on the EBITDA and revenue forecasts of the Action Network presented as part of its acquisition.
Looking ahead, the firm has reserved a MIP grant to reward 474,000 shares as a performance incentive, while an additional 201,000 share options will be made available to ‘20 Action Network employees’.
The board values its reward scheme at $12m, with the incentive program open for three years.
The Action Network’s MIP will have no dilutive effect on Better Collective’s existing shareholding, as the board has sanctioned a counter buy-back to meet its investor obligations.