DSM Integrated Annual Report 2022

Equity-based compensation

Main characteristics

The main conditions of the share-based compensation are:

  • Vehicle: Performance Share Units (PSUs), converted to shares at vesting
  • Grant date: Last trading day in March
  • Vesting period: Three years, starting at Grant date
  • Vesting conditions: Realization predefined performance goals and in service at vesting date
  • Performance period: Three performance years, starting 1 January in the year of grant
  • Holding period: Five years, starting at Grant date
  • Lock-up period: Blocking period chosen by incumbent; may result in a tax discount

Outstanding Performance Share Units

The table below provides an overview of outstanding PSUs (granted under the LTI and STI deferral & matching scheme respectively).

Outstanding PSUs

 

 

Year of issue

 

Outstanding at 31 Dec. 2021

 

In 2022

 

Outstanding at 31 Dec. 2022

 

Share price at date of grant (€)

 

 

 

 

Granted

 

Vested

 

Forfeited/expired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Geraldine Matchett

 

2019

 

15,052

 

-

 

(12,865)

 

(2,187)

 

-

 

97.74

 

 

2020

 

14,058

 

-

 

-

 

-

 

14,058

 

105.00

 

 

2021

 

11,850

 

-

 

-

 

-

 

11,850

 

147.40

 

 

2022

 

-

 

11,006

 

-

 

-

 

11,006

 

163.65

 

 

Total

 

40,960

 

11,006

 

(12,865)

 

(2,187)

 

36,914

 

 

 

 

Retained shares originated from PSUs

 

58,924

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dimitri de Vreeze

 

2019

 

14,974

 

-

 

(12,787)

 

(2,187)

 

-

 

97.74

 

 

2020

 

14,132

 

-

 

-

 

-

 

14,132

 

105.00

 

 

2021

 

11,850

 

-

 

-

 

-

 

11,850

 

147.40

 

 

2022

 

-

 

11,006

 

-

 

-

 

11,006

 

163.65

 

 

Total

 

40,956

 

11,006

 

(12,787)

 

(2,187)

 

36,988

 

 

 

 

Retained shares originated from PSUs

 

49,482

 

 

For employee information, as required by section 383d Book 2 of the Dutch Civil Code, reference is made to Note 27 Share-based compensation. On 31 December 2022, 1,647,106 (2021: 1,665,073) of the total number of treasury shares outstanding were held for servicing equity-based remuneration plans.

Shareholding obligation

In addition to the performance shares held because of vested grants under the DSM Stock Incentive Plan, the Co-CEOs invested in DSM shares. These shares were bought through private transactions with private funds (including shares purchased through STI deferral). The below table provides an overview of the number of shares held at year-end. The Co-CEOs significantly exceed the shareholding obligation (300% of base salary).

Managing Board holdings of DSM shares

 

 

31 December 2022

 

31 December 2021

 

 

Ordinary shares purchased with private money

 

Holdings from vested PSUs

 

Total

 

Ordinary shares purchased with private money

 

Holdings from vested PSUs

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Geraldine Matchett

 

19,242

 

58,924

 

78,166

 

16,736

 

51,594

 

68,330

Dimitri de Vreeze

 

28,345

 

49,482

 

77,827

 

25,839

 

42,722

 

68,561

Total holdings

 

47,587

 

108,406

 

155,993

 

42,575

 

94,316

 

136,891

LTI
Long-Term Incentive
STI
Short-Term Incentive