Better Collective agrees on $12m incentive plan to retain Action Network talent
Better Collective AS has disclosed a new management incentive plan related to its acquisition of US media subsidiary Action Network.
Last May, Stockholm-listed Better Collective closed its biggest M&A transaction to date by agreeing a $240 million deal to acquire Action Network – significantly bolstering the publisher’s US media presence.
Better Collective’s Remuneration Committee has agreed terms on a management incentive plan (MIP) for Action Network’s existing management and a ‘selected number of key employees’.
“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.” – read a Better Collective statement.
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.
Moving forward, Better Collective has reserved a MIP grant to reward 474,000 shares as a performance incentive, while a further 201,000 share options will be made available to ‘20 Action Network employees’.
The board values its reward scheme at $12 million, with the incentive programme open for a period of 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.