Kojamo plc’s Board of Directors decided to establish a long-term incentive plan
Kojamo plc Stock Exchange Release, 18 February 2021 at 8:45 a.m. EET
Kojamo plc’s Board of Directors decided to establish a long-term incentive plan
Kojamo plc’s Board of Directors decided on 18 February 2021 to establish a new share-based incentive plan. The incentive plan consists of three performance periods (2021–2023, 2022–2024 and 2023–2025). The Board of Directors will determine the performance criteria for the performance periods, the targets to be set for each criterion, the target group and the level of possible rewards available for the key employees included in the target group at the beginning of each performance period.
The possible reward for the performance period will be paid during the year following the expiry of the performance period partially in shares in the company and partially in cash. The cash portion is aimed to cover taxes and similar fees incurred to the key employees as a result of the rewards.
Ownership obligation and conditions for reward payment
The group’s CEO must hold 50 percent of the net number of shares paid to him based on the whole incentive plan, until his/her total shareholding in the company corresponds to the value of his/her annual gross salary.
Other participants must hold 50 percent of the net number of shares paid to them based on the whole incentive plan, until their total shareholding in the company corresponds to the value of 50 percent of their annual gross salary. Such amount of shares must be held as long as the participant’s employment or service continues in company belonging to the Kojamo group.
In case a key employee’s service in the Company is terminated prior to the payment of the reward, usually no reward will be paid.
Performance period 2021–2023
The Board of Directors has resolved on the performance criteria, targets and target group for the first performance period of 2021–2023. During the performance period the incentive plan is targeted at the members of the Management Team and other key employees, 19 persons in total. The possible reward for the performance period of 2021–2023 is based on the group’s total revenue and funds from operations (FFO) per share.
The possible reward for the performance period will be paid during the year following the expiry of the performance period partially in shares in the company and partially in cash. The rewards to be paid on the basis of the performance period of 2021–2023 correspond to the value of maximum total of 102,277 shares including the proportion to be paid in cash.
The aim of the incentive plan
The incentive plan aims to align the interests of Kojamo’s shareholders and key employees in order to increase the company’s value in the long term and commit the key employees to the implementation of the company’s strategy and offer them a competitive incentive plan based on earning and accumulation of the company’s shares.
In addition to the incentive plan established in 2021 Kojamo has also a long-term incentive plan established in 2018 with performance periods 2019–2021 and 2020–2022 currently ongoing.
For more information, please contact:
Maija Hongas, Manager, Investor Relations, Kojamo Plc, tel. +358 20 508 3004, maija.hongas@kojamo.fi
Distribution:
Nasdaq Helsinki, key media
Kojamo is Finland’s largest private residential real estate company and a frontrunner in the housing business. Our mission is to create better urban housing. The Lumo brand provides environmental-friendly housing and services in Finland’s biggest growth centres. We actively develop the value of our investment properties by developing new properties and our existing property portfolio. We want to be the property market frontrunner and the number one choice for our customers. Kojamo’s shares are listed on the official list of Nasdaq Helsinki. For more information, please visit kojamo.fi/en/
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