Tuesday, January 8, 2019
The company’s Board of Directors has decided on the starting up of the third individual plan (LTI 2019-2021) for the performance and share value based long-term incentive program for the top management, decided on February 15, 2017.
The LTI 2019–2021 plan has two parts. The first part consists of a three-year earnings period. The weight is 50 per cent of the whole plan and the performance target is the Total Shareholder Return (TSR) proportioned to the peer group. The second part consists of a one-year earnings period followed by a two-year restriction period. The weight is 50 per cent of the whole plan and the performance target is Earnings Per Share (EPS). Any rewards based on both parts will be paid in the spring of 2022 if the performance targets set by the Board of Directors are achieved. Eleven persons belonging to Raute Group’s top management are entitled to participate in the LTI 2019–2021 system.
If the performance targets set for the plan beginning at the start of 2019 are fully achieved, the aggregate amount of rewards paid based on the plan is at most approximately 16,800 pieces of the company’s series A shares and in value of approximately EUR 0.4 million, estimated based on the average share price on the trading day preceding this release. The total amount of rewards means their gross amount before the withholding of the applicable payroll tax.
Raute’s overall long-term remuneration system is made up of three-year plans that begin every year. The purpose of the plan is to align the objectives of the owners and management in order to develop the company’s value, and to commit management to achieving the company’s strategic goals by offering a competitive long-term incentive plan. Information was released on the overall long-term remuneration system on February 15, 2017 and more up-to-date information is given in the Remuneration Statement published on the company’s website.
Tags: incentive program, Raute, third individual plan, top management
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