The Board of Directors of Suominen Corporation resolved on a new share-based Long-Term Incentive Plan for management and key employees
Suominen Corporation's stock exchange release on February 3, 2023 at 9.15 a.m. EET
The Board of Directors of Suominen Corporation has resolved on February 2, 2023 on a new share-based Long-Term Incentive Plan (LTI Plan) for the management and 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 LTI Plan has one three-year Performance Period, which includes calendar years 2023–2025. The LTI Plan is directed to approximately 25 people including the President & CEO of Suominen.
The Board of Directors resolved that the potential reward for the Performance Period 2023–2025 will be based on the relative Total Shareholder Return (TSR). The maximum total amount of potential share rewards to be paid on the basis of the Performance Period 2023–2025 is 793,500 shares of Suominen Corporation, representing the gross reward before the deduction of taxes and tax-related costs arising from the reward.
The Board of Directors will be entitled to reduce the rewards agreed in the LTI Plan if the limits set by the Board of Directors for the share price are reached.
If the targets of the Plan are reached, rewards will be paid to participants in spring 2026 after the end of the Performance Period. The potential rewards from the Performance Period 2023–2025 will be paid partly in the Company’s shares and partly in cash. The cash proportion is intended to cover taxes and tax-related costs arising from the reward to the participant. The Company also has the right to pay the reward fully in cash under certain circumstances. As a rule, no reward will be paid, if a participant’s employment or service ends before the reward payment.
A member of the 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:
Klaus Korhonen, Interim President & CEO, Suominen Corporation
Interview requests: Emilia Peltola, VP, Communications & IR, tel. +358 50 540 9747
Suominen manufactures nonwovens as roll goods for wipes and other applications. Our vision is to be the frontrunner for nonwovens innovation and sustainability. The end products made of Suominen’s nonwovens are present in people’s daily life worldwide. Suominen’s net sales in 2021 were EUR 443.2 million and we have over 700 professionals working in Europe and in the Americas. Suominen’s shares are listed on Nasdaq Helsinki. Read more at www.suominen.fi.
Nasdaq Helsinki Ltd.