Share-based Incentive Program 2013-2015
OUTOTEC OYJ STOCK EXCHANGE RELEASE, JANUARY 16, 2013 AT 9.30 AM
Share-based Incentive Program 2013-2015
Outotec's Board of Directors has decided to adopt a new Share-based Incentive Program for the company's key personnel. The Program aims to combine the objectives of shareholders and management to increase Outotec's value as a company and also commit key employees to the company by offering a competitive reward based on a long-term shareholding in Outotec.
The Program comprises three earning periods: calendar years 2013, 2014 and 2015. The Board of Directors determines on an annual basis the maximum amount of shares to be allocated in each calendar year, participants of the Program, amount of the maximum reward for each individual, the earning criteria and the targets established for them.
The Share-based Incentive Program will cover around 150 Outotec individuals in the 2013 earning period, which commenced on January 1, 2013. A precondition for the Executive Board members being eligible for the Share-based Incentive Program is that he or she participates in Outotec's Employee Share Savings Plan.
The reward is based on the achievement of the targets set for earnings per share, order intake and sales growth compared to key competitors. The reward will be paid in 2014 in Outotec's shares and as a cash payment, which is intended to cover the taxes and tax-related costs arising from payment incurred by participants. The person must hold the earned shares for at least two years after the end of the earning period. If the person's employment ends during this engagement period, he or she has to return all or part of the earned shares to the company without compensation. The Executive Board members are recommended to hold an amount equaling his or her annual net salary of the shares purchased from the Employee Share Savings Plan and/or received from the Share-based Incentive Program.
The maximum total reward for 2013 earning period of the Program, depending on the achievements of the set targets, is 210,000 allocated Outotec shares and cash to cover income taxes. Final allocations will be decided by the end of January 2013. Allocated shares for the earning periods 2014 and 2015 will be decided by the Board of Directors on an annual basis for each earning period separately.
For further information please contact:
OUTOTEC OYJ
Kirsi Nuotto, Senior Vice President - Human Capital
tel. +358 20 529 2023
e-mail firstname.lastname@outotec.com
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NASDAQ OMX Helsinki
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