The Board of Directors of KONE Corporation decided on new performance periods for the long-term incentive plans
KONE Corporation, stock exchange release, January 26, 2024, at 9.30 a.m. EET
The Board of Directors of KONE Corporation decided on new performance periods for the long-term incentive plans
The Board of Directors of KONE Corporation has on 25 January 2024 decided on commencement of a performance based long-term incentive plan 2024–2026 and Restricted Share Plan 2024 under the long-term incentive structures as announced on 28 January 2021.
Performance based long-term incentive plan 2024
The performance based long-term incentive plan consists of annually commencing individual share plans, each with a three-year rolling performance period. The aim of the share-based incentive plan is to support long term value creation and align interests of shareholders and management. The target group and targets within the plan as well as possible rewards are decided upon annually by the Board of Directors.
For the performance period 2024–2026, the plan has approximately 600 participants and the targets for the performance period are based on adjusted EBIT margin, sales growth and sustainability targets. The maximum number of shares to be paid based on the performance period 2024–2026 is 1,216,229 KONE class B shares. The potential rewards under the plan will be paid as a combination of KONE class B shares and a cash payment equivalent to the taxes and similar charges that are incurred from the receipt of the shares. Potential rewards from the performance period 2024–2026 will be paid out in spring 2027.
Restricted Share Plan 2024
In addition to the above, KONE operates a restricted share plan structure that serves as a complementary long-term share plan to be used as a commitment instrument for recruitment and retention purposes for top management and other selected key persons. The potential rewards under the plan will be paid to the participants in KONE Class B shares, provided that their employment or service relationship with KONE Group is in force at the time of payment. The maximum number of shares to be paid from Restricted Share Plan 2024 is 80,000 KONE class B shares.
In total, the performance based long-term incentive plan performance periods 2021–2023, 2022–2024 and 2023–2025 correspond to a maximum of 2,799,902 KONE class B shares. In total, Restricted Share Plans 2021, 2022 and 2023 correspond to a maximum of 140,000 KONE class B shares.
For further information, please contact:
Susanne Skippari, Executive Vice President, People & Communications, tel. +358 20 475 4524
Sender:
KONE Corporation
Johannes Frände
General Counsel, Secretary to the Board
Susanne Skippari
Executive Vice President
People & Communications
About KONE
At KONE, our mission is to improve the flow of urban life. As a global leader in the elevator and escalator industry, KONE provides elevators, escalators and automatic building doors, as well as solutions for maintenance and modernization to add value to buildings throughout their life cycle. Through more effective People Flow®, we make people's journeys safe, convenient and reliable, in taller, smarter buildings. In 2023, KONE had annual sales of EUR 11.0 billion, and at the end of the year over 60,000 employees. KONE class B shares are listed on the Nasdaq Helsinki Ltd. in Finland.
www.kone.com