The Board of Directors of Metsäliitto Cooperative has resolved on executives' incentive plan
Metsä Group Stock Exchange Release 10 January 2017 at 5 pm EET
The Board of Directors of Metsäliitto Cooperative has resolved to continue the share-based incentive plan directed to Metsä Group executives. The aim of the plan is to combine the objectives of the owners and executives in order to increase the value of the Group, to commit the executives to perform the mutual strategy and to offer them a competitive reward plan based on share ownership.
The performance share plan 2017—2021 consists of three performance periods, namely calendar years 2017—2019, 2018—2020 and 2019—2021. The Board of Directors will resolve on the performance criteria and targeted performance levels for each criteria at the beginning of each performance period. The potential reward from the plan for the performance period 2017—2019 is based on the development of Metsä Group’s Return on Capital Employed (ROCE, %), as determined by the Board. The Board is entitled to reduce the rewards fully or partly if the Group’s operating result development, or equity ratio falls below levels defined by the Board. Furthermore, the Board is entitled to determine the maximum amount of the bonuses to be paid for Metsä Group’s one or more incentive schemes. If the amount set for the payable bonuses is exceeded, the bonuses can be reduced for part exceeding the maximum amount.
The performance period is followed by an approximate two-year restriction period during which the participant is not allowed to transfer or sell the shares. The potential reward from the performance period 2017—2019 will be paid in the spring of 2020 in Metsä Board Corporation’s B series shares.
During the performance period 2017—2019, the target group of the plan consists of 85 participants, including the members of the Executive Management Team. The rewards to be paid on the basis of the plan for the performance period 2017—2019 will in aggregate amount to a total of 1,400,000 Metsä Board Corporation’s B series shares. In addition, a cash proportion is included in the reward to cover taxes and tax-related costs arising from the reward.
For further information, please contact:
Martti Asunta, Chairman of the Board of Directors, tel. +358 40 829 9393
Metsä Group is a forerunner in bioeconomy utilising renewable wood from sustainably managed northern forests. Metsä Group focuses on wood supply and forest services, wood products, pulp, fresh forest fibre paperboards and tissue and cooking papers.
Metsä Group’s sales totalled EUR 5.0 billion in 2015, and it employs approximately 9,600 people. The Group operates in some 30 countries. Metsäliitto Cooperative is the parent company of Metsä Group and is owned by approximately 116,000 Finnish forest owners.