Bittium Corporation: New Period in the Share-Based Incentive Scheme for the Management of Bittium
Stock exchange release
Free for publication on February 10, 2022 at 8.01 am (CET+1)
Bittium Corporation: New Period in the Share-Based Incentive Scheme for the Management of Bittium
The Board of Directors of Bittium Corporation has decided on the new period in the share-based long-term incentive scheme for the Bittium group’s management. It comprises a Performance Share Plan (“PSP”). The incentive scheme was initially established and communicated in March 2020.
The objectives of the Performance Share Plan are to align the interests of Bittium's management with those of the Company's shareholders and, thus, to promote shareholder value creation in the long term, to commit the management to achieving Bittium's strategic targets and the retention of Bittium's management.
The Performance Share Plan consists of three annually commencing three-year performance share plans, PSP 2020-2022, PSP 2021-2023 and PSP 2022-2024, each with a one-year performance period, which is followed by the payment of the share reward and a two-year transfer restriction period. Each plan is, however, subject to a separate Board decision.
Third Plan 2022-2024
The top management of the company, including the members of Bittium's Management Group are eligible to participate in the third PSP 2022–2024 plan.
The performance measures based on which the potential share reward under PSP 2022-2024 will be paid are the revenue growth and cash flow before financial items of Bittium. A precondition for the payment of the share reward is, in addition, that the employment relationship of the participant with Bittium continues at the time the reward is paid. The potential reward will be paid in shares of Bittium.
If all the performance targets set for the third plan, PSP 2022 – 2024, are fully achieved, the aggregate maximum number of shares to be paid based on this third plan is approximately 122,100 shares (gross before the withholding of the applicable payroll tax).
The aggregate gross value of PSP 2022 – 2024, estimated based on the volume-weighted average quotation of Bittium's share during the period H2/2021, is approximately EUR 0.7 million.
Other terms
Bittium applies a share ownership policy to the persons eligible for the plan. According to this policy each member is expected to retain in his/her ownership at least half of the shares received under Bittium's share-based incentive plans until the value of CEO's share ownership in Bittium corresponds to at least his/her annual gross base salary and other participants' 25% - 50% their annual gross base salary.
Oulu, Finland, February 10, 2022
Bittium Corporation
The Board of Directors
Further information
Hannu Huttunen
CEO
Bittium Corporation
Tel. +358 40 344 3507
Distribution
Nasdaq Helsinki Oy
Main media
Bittium
Bittium specializes in the development of reliable, secure communications and connectivity solutions leveraging its over 35-year legacy of expertise in advanced radio communication technologies. Bittium provides innovative products and services, customized solutions based on its product platforms and R&D services. Complementing its communications and connectivity solutions, Bittium offers proven information security solutions for mobile devices and portable computers. Bittium also provides healthcare technology products and services for biosignal measuring in the areas of cardiology, neurology, rehabilitation, occupational health and sports medicine. Net sales in 2021 were EUR 86.9 million and operating profit was EUR 3.2 million. Bittium is listed on Nasdaq Helsinki. www.bittium.com