Suominen Corporation Stock Exchange Release 11 December 2017 at 4:30 pm EET
The Board of Directors of Suominen Corporation resolved on incentive plan for management and key employees
The Board of Directors of Suominen Corporation has approved a new share-based incentive plan for the Group management and Group key employees. The aim of the new 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 plans based on earning and accumulating the Company´s shares. The new plan replaces the current plan, resolved by the Board of Directors in December 2014.
Performance Share Plan 2018
The new Performance Share Plan includes a three-year performance period, calendar years 2018–2020. The Board of Directors of the Company will decide on the Plan’s performance criteria and required performance levels for each criterion at the beginning of a performance period. The Performance Share Plan is directed to approximately 20 people.
The potential reward of the Plan from the performance period 2018–2020 will be based on the Relative Total Shareholder Return (TSR) and Earnings before Interest and Taxes, % of net sales (EBIT%). The rewards to be paid on the basis of the performance period 2018–2020 correspond to the value of an approximate maximum total of 502,000 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 the Performance Share Plan if the limits set by the Board of Directors for the share price are reached.
Reward Payment and Ownership Obligation for the Management
The potential rewards from the performance periods 2018–2020 will be paid partly in the Company’s shares and partly in cash in 2021. 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.
The Board of Directors
For additional information, please contact
Nina Kopola, President & CEO, tel. +358 (0)10 214 300