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  • The Board of Directors of Konecranes Plc resolved on incentive plans directed to the key employees and the President and CEO

The Board of Directors of Konecranes Plc resolved on incentive plans directed to the key employees and the President and CEO

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The Board of Directors of Konecranes Plc has resolved to establish new long-term incentive plans for the Group key employees and the President and CEO. The new share-based incentive plans are a Performance Share Plan 2017 for the Group key employees, a Restricted Share Unit Plan 2017 for selected Group key employees and a Performance Share Plan 2017—2021 for the President and CEO.

The aim of the new incentive plans is to align the objectives of the shareholders and the plan participants, to retain the plan participants at the company, to reward them for achieving Board established targets and to offer them competitive reward plans that are based on earning and accumulating the company’s shares.

The potential rewards from the incentive plans will be paid partly in Konecranes Plc class A shares and partly in cash after the performance periods or vesting periods. The cash proportion is intended to cover taxes and tax-related costs arising from the rewards to the plan participants. As a rule, no reward will be paid if a plan participant’s employment or service ends before the reward payment.

Performance Share Plan 2017

The Performance Share Plan includes three performance periods, calendar years 2017—2019, 2018—2020 and 2019—2021. The Board of Directors will resolve on the performance criteria and on the required performance levels for each criterion at the beginning of each performance period.

During the performance period 2017—2019, the plan offers the key employees a possibility to earn reward based on achieving the required performance levels established for the Konecranes Group’s cumulative adjusted Earnings per Share (EPS) during the financial years 2017—2019. Adjustments to the EPS include defined restructuring costs, transaction costs related to the MHPS acquisition, purchase price allocation amortization and other unusual items reported as adjustments by the company. The adjusted EPS includes the gain on the disposal of STAHL CraneSystems.


The rewards to be paid on the basis of the performance period 2017—2019 correspond to an approximate maximum total of 880,000 Konecranes Plc class A shares including also the proportion to be paid in cash. The plan is directed to approximately 260 key employees, including the members of the Group Executive Board and the Senior Management during the performance period 2017—2019. The Board of Directors will be entitled to reduce the rewards payable on the basis of the performance period 2017—2019 if certain reward value cap is reached.

Restricted Share Unit Plan 2017

The Restricted Share Unit Plan is directed to selected key employees in Konecranes. The vesting periods will last for 12 to 36 months. The prerequisite for reward payment is that a key employee’s employment or service continues until the end of the vesting period. The rewards to be allocated on the basis of the entire plan will amount to a maximum total of 200,000 Konecranes Plc class A shares including also the proportion to be paid in cash.

Performance Share Plan 2017—2021 for the CEO

The CEO long-term incentive plan consists of one five-year performance period,
calendar years 2017—2021. The potential reward from the CEO Plan will be based on the Konecranes Group’s cumulative adjusted Earnings per Share (EPS) during the financial years 2017—2019 and cumulative Earnings per Share (EPS) during the financial years 2020—2021. The rewards to be paid on the basis of the CEO Plan correspond to a maximum total of 200,000 Konecranes Plc class A shares including also the proportion to be paid in cash. However, the shares paid and to be paid as reward, on the basis of the performance periods of the Performance Share Plan 2017, will be deducted from the payable reward. The CEO will have a possibility to earn a total of 48,000 Konecranes Plc class A shares including also the proportion to be paid in cash, on the basis of the first performance period 2017—2019 of the Performance Share Plan 2017.

The CEO will not be entitled to sell shares paid as reward through the Performance Share Plan 2017—2021 for the CEO or the Performance Share Plan 2017 until he owns Konecranes shares worth EUR 750,000.00 in total.

Ownership Obligations

A member of the Group Executive Board or the Senior Management must hold a minimum of 50 per cent of any net shares given on the basis of these plans, until the member’s shareholding in the company in total corresponds to the value of the member’s annual salary and the member’s membership in the Group Executive Board or the Senior Management continues.

KONECRANES PLC
The Board of Directors



FURTHER INFORMATION
Mr. Christoph Vitzthum, Chairman of the Board, call-back requests tel. +358 40 195 5511




Konecranes is a world-leading group of Lifting Businesses™, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity enhancing lifting solutions as well as services for lifting equipment of all makes. In 2016, Group (comparable combined company) sales totaled EUR 3,278 million. The Group has 17,000 employees at 600 locations in 50 countries. Konecranes class A shares are listed on the Nasdaq Helsinki (symbol: KCR).



DISTRIBUTION
Nasdaq Helsinki

Major media
www.konecranes.com
 

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