On 29 June 2017, the Company’s General Shareholders Meeting approved a long-term share-based incentive plan (“the plan”) for the Group’s executives and employees. The Plan was approved retroactively from 1 January 2017, it will have a total duration of five years, divided into three – independent of each other – three-year cycles.

The plan consisted of the grant of ordinary shares of NH Hotel Group, S.A. to the beneficiaries calculated as a percentage of the fixed salary, according to their level of responsibility. The number of shares to be granted was subject to the degree of fulfilment of the following objectives:

    • TSR (total shareholder return) at the end of each of the Plan’s cycles, comparing the performance of NH Hotel Group, S.A. shares with the STOXX® Europe 600 Travel & Leisure share index
    • Revaluation of the Share
    • Recurring Net Profit
    • Recurring EBITDA

The beneficiaries must remain in the Group at the end of each cycle, notwithstanding the exceptions deemed appropriate, as well as achieving the minimum thresholds for each of the objectives.

The Plan targeted approximately 100 beneficiaries.

The current cycles at 31 December 2021 are:

The difference between the total shares assigned at the beginning of each cycle and the live shares at 31 December 2021 correspond to beneficiaries who left between the launch up to the final third cycle (31 December 2021).

The second cycle (2018-2020) of the second long-term incentive plan was settled in the first half of 2021 with the delivery of 189,962 net shares at a fair value per unit of 4.28 euros. The settlement of this Plan was made net of taxes.

At the date of publication of this report, all the cycles – in force or ended – had been approved by the Board of Directors.

The maximum amount approved by the General Shareholders’ Meeting for the three cycles of the second Plan is 16,200,000 euros.

The effect of these items on the consolidated comprehensive profit and loss statement for 2021 was 958 thousand euros (no impact was recorded in 2020).