Lemminkäinen adopted a new long-term share based incentive plan for key personnel
LEMMINKÄINEN CORPORATION STOCK EXCHANGE RELEASE 18 DECEMBER 2015 AT 9:00 A.M.
LEMMINKÄINEN ADOPTED A NEW LONG-TERM SHARE BASED INCENTIVE PLAN FOR KEY PERSONNEL
The Board of Directors of Lemminkäinen Corporation has adopted a new share-based incentive plan for the Group's key personnel. The plan aims to combine the objectives of the shareholders and key personnel in order to increase the value of the company, while committing the participants of the plan to the company and increasing their ownership in the company.
The plan includes three one-year performance periods for calendar years 2016, 2017 and 2018. The Board of Directors of the company will decide upon the performance criteria and related targets at the beginning of each performance period, including share allocation quotas and participants of the plan. The potential reward for each performance period shall be paid in four installments, each corresponding to 25% of the total reward, during the four calendar years following the performance period. Should a participant’s employment or service in the company end during the performance or vesting period, he/she is not primarily entitled to any unpaid instalment of the reward.
The reward will be paid out as a combination of shares and cash. The proportion to be paid out in cash is intended to cover the taxes and tax-related costs arising from the reward. For the reward payment Lemminkäinen Corporation at its sole discretion, may use one or more of the following: newly issued shares, the company’s own existing shares, shares purchased from the open market, or cash.
Approximately 110 persons will be in the scope of the plan for the performance period 2016. In 2016, the reward is based on Lemminkäinen Group’s ROCE.
The rewards to be paid on the basis of the plan correspond to the value of a maximum total of 1,200,000 Lemminkäinen Corporation shares (including also the proportion to be paid in cash).
The Board of Directors recommends that the President and CEO of the company and the members of the Group Executive Team would hold 50 per cent of the shares received on the basis of the plan until the value of their share ownership corresponds to their six months' salary. This share ownership should be maintained during the participant’s employment within the company.
The new plan will replace the company's earlier long-term incentive plan 2013–2015, which will end on 31 December 2015. The essential terms and conditions of the current share-based incentive plan have been published on 22 November 2012 and are described on the company website at www.lemminkainen.com.
Casimir Lindholm, President and CEO
Tel. +358 2071 53304
Tania Jarrett, EVP HR
Tel. +358 2071 50019
NASDAQ OMX Helsinki
Together with our customers we create conditions that make living, working and travelling functional, safe and healthy. We operate in Northern Europe and employ about 5,600 professionals. In 2014, our net sales were about EUR 2.0 billion. Lemminkäinen Corporation's share is quoted on NASDAQ OMX Nordic Exchange Helsinki. www.lemminkainen.com