Citycon resolved on Long-Term Incentive Plans for Key Employees
CITYCON OYJ Stock Exchange Release 23 February 2018 at 17:50 hrs
The Board of Directors of Citycon Oyj has approved two new share-based incentive plans for the Group key employees, a Matching Share Plan 2018—2020 and a Restricted Share Plan 2018—2020.
The aim of the new plans is to combine the objectives of the shareholders and the key employees in order to increase the value of the company in the long-term, to bind the key employees to the company, and to offer them competitive reward plans based on acquiring and receiving the company´s shares.
Matching Share Plan 2018—2020
The new Matching Share Plan 2018—2020 includes three matching periods, calendar years 2018—2019, 2019—2020, 2020—2021. The prerequisite for participation in this plan and for reward payment is that a key employee invests in the company’s shares a pre-determined percentage of the bonus earned from the company’s performance bonus scheme during the calendar year preceding a matching period (the “Share Ownership Prerequisite”). If a key employee´s Share Ownership Prerequisite is fulfilled and his or her employment or service is in force with a Citycon group company upon reward payment, he or she will receive free matching shares for shares subject to the Share Ownership Prerequisite.
The Matching Share Plan 2018-2020 is directed to the CEO and the other members of the Corporate Management Committee. The rewards to be paid on the basis of this plan from the matching period 2018—2019 correspond to the value of an approximate maximum total of 200,000 Citycon Oyj shares. In addition, a cash proportion is included in the reward to cover taxes and tax-related costs arising from the reward to the participant. The rewards from the matching period 2018—2019 will be paid in 2020.
Restricted Share Plan 2018—2020
The rewards from the new Restricted Share Plan 2018—2020 may be allocated in 2018—2020. The reward will be based on a valid employment or service contract of a key employee upon the reward payment, and it will be paid partly in the company’s shares and partly in cash after the end of a vesting period. A vesting period will last 12 to 36 months from a reward allocation.
The Restricted Share Plan 2018-2020 is directed only to selected key employees, excluding the CEO and other members of the Corporate Management Committee. The rewards to be paid on the basis of this plan in 2018—2020 correspond to the value of an approximate maximum total of 200,000 Citycon Oyj shares including also the cash proportion to be used for taxes and tax-related costs.
Espoo, 23 February 2018
The Board of Directors
For further information, please contact:
Marcel Kokkeel, CEO
Tel. +358 40 154 6760
Citycon Oyj (Nasdaq Helsinki: CTY1S) is a leading owner, developer and manager of urban grocery-anchored shopping centres in the Nordic and Baltic region, managing assets that total almost EUR 5 billion and with market capitalisation of close to EUR 2 billion. For more information about Citycon, please visit www.citycon.com
Citycon has investment-grade credit ratings from Moody's (Baa1) and Standard & Poor's (BBB). Citycon Oyj’s share is listed in Nasdaq Helsinki.