Komplett Bank Annual Report 2020

In 2020, 2,494,011 options were exercised (1,507,591 options in 2019). The weighted average share price at the time when exercised in 2020 is NOK 4.63 (9.88 NOK in 2019). The Board are eligible to extend the exercise period for previous granted options in accordance with note 11 and the Board’s declaration on the determination of salaries and other remuneration for members of the management. It is expected that all options will be exercised. Fair value of the options are estimated by using the Black & Scholes option pricing model. Average fair value of granted options in 2020 is NOK 5.5 million (7.0 million in 2019). No share options connected to the variable remuneration as of today is granted based on employee performance in 2020. In accordance with the Bank’s guidelines on variable remuneration such grant will potentially first happen later in 2021, subsequently to the annual report for 2020 being set by the general meeting. The cost for variable remuneration for 2020 equals NOK 12.6 million (NOK 16.8 million for 2019). The exact number of potentially granted options is dependent on the market value at the time of the grant and other factors described in this note. Assumptions used in the calculation: Share price at the time of the grant The share price used equals the listed price at Oslo Børs at the time of the grant. Volatility Historical volatility is used as an indication of future volatility. Expected volatility is therefore using historic volatility equaling a volatility of 35 per cent in 2020 and 35 per cent in 2019. Expiration of the option The option’s expecting maturity is 5 years. Risk-free rate Risk free rate used in the calculation of the options equals the interest rate on 5 year government bonds equaling 1.22 per cent for 2020 and 1.28 per cent for 2019. Komplett Bank Annual Report 2020 101