Suominen Corporation Stock Exchange Release 9 December 2016 at 4:30 pm EET
The Board of Directors of Suominen Corporation has approved a new earnings period in the share based incentive plan (Performance Share Plan) for the Group management and Group key employees. The new earnings period includes calendar years 2017–2019. The aim of the plan is to combine the objectives of the shareholders and the persons participating in the plan in order to increase the value of the Company in the long-term, to bind the participants to the Company, and to offer them competitive reward plan based on earning and accumulating the Company´s shares. The Plan is directed to approximately 20 people.
The potential reward of the plan from the performance period 2017–2019 will be based on the Suominen Group´s net sales growth, Earnings Before Interest and Taxes margin (EBIT %) and Return on Invested Capital (ROI %). The rewards to be paid on the basis of the performance period 2017–2019 correspond to the value of an approximate maximum total of 480,000 Suominen Corporation shares (including also the proportion to be paid in cash).
The Board of Directors will be entitled to reduce the rewards agreed in plan if the limits set by the Board of Directors for the share price are reached.
The Board of Directors will decide separately on new earnings periods. The Board of Directors will decide on the plan’s performance criteria and required performance levels for each criterion at the beginning of an earnings period.
The potential rewards from the earnings periods 2017–2019 will be paid partly in the Company’s shares and partly in cash in 2020. The cash proportion is intended to cover taxes and tax-related costs arising from the reward to the participant. As a rule, no reward will be paid, if a participant´s employment or service ends before the reward payment.
A member of the Corporate Executive Team must hold 50 per cent of the net number of Shares given on the basis of the Plan, as long as his or her shareholding in total corresponds to the value of half of his or her annual gross salary. The President & CEO of the Company must hold 50 per cent of the net number of Shares given on the basis of the Plan, as long as his or her shareholding in total corresponds to the value of his or her annual gross salary. Such number of Shares must be held as long as the participant’s employment or service in a group company continues.
Board of Directors
Jorma Eloranta, Chair of the Board, tel. +358 (0)10 214 300
Nina Kopola, President & CEO, tel. +358 (0)10 214 300