Realisation of Kesko's share-based commitment and incentive plan for 2017

Kesko Corporation’s Board of Directors has decided, based on the fulfilment of the performance criteria of the transitional 2017 share-based commitment and incentive plan, to grant a total of 133,751 own B shares held by the Company as treasury shares to the members of management and other selected key persons who were included in the target group for the 2017 performance period. This number of shares represents gross earnings, from which the applicable withholding tax is deducted and the remaining net amount is paid to the participants in shares. 

Kesko’s share-based commitment and incentive plan comprises three share-based plans, which were communicated in a stock exchange release on 2 February 2017. The Performance Share Plan (PSP) consists of individual annually commencing share plans, each with a two-year performance period and a two-year commitment period following the payment of the potential share award. The Bridge Plan is a one-off, four-year plan aimed at covering the transitional phase from Kesko's previous long-term commitment and incentive plan, which was based on one-year performance periods, to the new commitment and incentive plan adopted in 2017, with a two-year performance period. The PSP and the Bridge Plan are complemented by a Restricted Share Pool (RSP), which consists of annually commencing share plans. Each RSP plan includes a three-year commitment period, after which the potentially granted share awards of the individual plan will be paid to the participants in Kesko’s B shares, provided that the participant’s employment or service relationship with Kesko Group continues until the payment of the awards. 

Kesko Corporation’s Board of Directors has decided, based on the fulfilment of the performance criteria of the transitional share-based commitment and incentive plan (Bridge Plan) for the performance period 2017, to grant a total of 133,751 own B shares held by the Company as treasury shares to some 120 members of Kesko’s management and other selected key persons who were included in the target group for the 2017 performance period. The shares will be transferred to the grantees by the end of April 2017 in accordance with the terms and conditions of the plan. The grantees cannot transfer or pledge these shares prior to the expiry of the related commitment period on 10 February 2021. This number of shares represents gross earnings, from which the applicable withholding tax is deducted and the remaining net amount is paid to the participants in shares. The granting of shares is based on the authorisation given to the Board of Directors by the Annual General Meeting held on 4 April 2016.  

Kesko Corporation’s Board of Directors will make a decision regarding the establishment of a PSP and an RSP for 2018 in March 2018. The decision will be communicated separately.  

Kesko applies a share ownership recommendation policy to the members of Kesko's Group Management Board. According to the recommendation, each Group Management Board member shall maintain a holding of at least fifty per cent of the net shares they have received under the Company's share-based commitment and incentive plan until their holding of Kesko shares corresponds to at least their fixed gross annual salary. 

Further information is available from Matti Mettälä, Executive Vice President,
tel. +358 105 322 200.
 

Kesko Corporation  

DISTRIBUTION
Nasdaq Helsinki Ltd
Main news media
www.kesko.fi
 

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