Sirma Group Holding (SKK BU) approved new management remuneration policy; continues with planned US expansion – these are some of the highlights from the regular shareholders’ meeting held June 14th 2016.
Management annual pay defined
The company’s shareholders approved a cap on management’s annual pay with a floating short and long-term remuneration linked to short- and long-term performance of the company.
First, Sirma’s board of directors, consisting of eight members, are to receive BGN 384k in total over the course of a fiscal year. Second, they would be entitled to a cash bonus of up to 6% of consolidated net income but not more than 40% of the unconsolidated net income before taxes and provisions. They would be eligible for the bonus on achieving 15% y/y growth in consolidated revenue and higher or equal cons net income over the course of the year. Third, the board is entitled to a stock bonus if additionally the market cap of the company has increased by at least 5% y/y over a reference period between two fiscal years.
Share buyback program by end of 2019
To fulfill the stock bonus package for the management, the AGM also approved a share buyback program by end of 2019 to acquire up to 0.5% or 300 000 shares at the price range of BGN 0.50-1.50 per share.
US expansion is underway
At the AGM Sirma’s management once again reiterated the group’s investment plans. Tsvetan Alexiev, Sirma Group Holding’ CEO, said investments in launching the US office are currently underway. The company would invest up to BGN 4.5m in establishing the office and hiring key sales and project management personnel. Sirma’s key target is building an efficient sales team in the US to boost the top line. FY2016 sales guidance is 25% rise y/y and doubling of net income. The company has also hired an M&A consultant to locate potential takeover targets in synergy verticals in Europe in order to increase its European position in addition to the US.