Good morning. My name is Petter Vågan. I am the Chairman of the Compensation Committee at StrongPoint. At the extraordinary general meeting in October last year, it was decided to adopt a long-term incentive program as part of the total remuneration for executive management and key personnel. The option program is designed to align and incentivize management performance with shareholder value creation and to attract and retain high-caliber executive management and key personnel. The board considers this to be an important element in the efforts to reach the communicated 2025 strategic milestones and ambitions. The participants will be eligible to participate in the company's incentive program called LTIP 2021. The share options allocated under the LTIP will be allocated to the participants based on company and individual performance and at the board's discretion.
The board will take into consideration the company's goals and strategies, as well as targeted performance for executive management when granting the options. The option plan is a performance-based remuneration scheme reflecting the underlying long-term value creation of the company. The limits for the allocation of share options to the participants is determined by the board within the board mandates approved by the annual general meeting. The option scheme will be granted with a strike price equal to the market price at grant. The strike price is calculated as the average market price per share over the last five days before grant. It is a volume-weighted average price. The options will vest over three years, with 25% vesting after one year, 25% after two years, and the remaining 50% after three years.
The split investing underpins the retention ambition of the program. Any non-exercised options expire five years after grant. The Board of Directors recommends to the annual general meeting that the long-term incentive program, launched and approved in the extraordinary general meeting in 2020, continues for 2021. The number of options granted under the LTIP 2021 will not exceed 3% of the total current outstanding shares of the company. The LTIP will continue with yearly allocations of share options, each at between 1%- 3% of the total outstanding shares of the company. The total number of options shall never exceed 10% of outstanding shares. The authorization suggested is, however, limited to one year only. The annual general meeting is requested to authorize the board to settle the options, either by issuing new shares or by acquiring shares in the market. Morthen, that is the proposal. Thank you. Over to you.
Thank you, Petter. I think you have done a very good job in describing it because we got almost 94% support for the program, so it is definitely been approved by this AGM. Thanks a lot. Then it is a couple of more items on the agenda that we normally have and cover. First one is authorization for the board to increase the share capital. It is very practical to have if we are in situations where we need to act quickly, for example, in M&A situations and stuff like that. No amendments have been received, so it is been approved also by the meeting this year. Next one, authorization for the board to acquire own shares. Also very practical and good to have and can be used in terms of optimizing our balance sheet, for example.
It can also, which I think is very relevant for us now with the share-based programs we have in place, also to have a holding of own shares that can be used for those programs. I think that is the intention going forward. No other amendments have been received, so we see that as being approved by this general assembly. Final one on the agenda is also a kind of nitty-gritty small detail one. We had in place election for the board for a period of two years at a time. Both we, the board, and the nomination committee find it is more practical to have one year at a time. So we changed it back to one year for those elections. I think everyone that has sent in their votes is supporting that one, so that has now also been approved by this general meeting. Thanks a lot.
That in fact concludes this year's general assembly for StrongPoint ASA. I would thank all of you again for sending in your votes in advance. I am sincerely hoping that next year we can meet in a conference room somewhere in the Oslo area. Thanks a lot and stay safe. Thanks.