The Board of Directors of Olvi Plc Decided on Incentive Plans for the Group’s Key Employees
Olvi Plc Stock Exchange Release 2 February 2021 at 3.30 pm
The Board of Directors of Olvi Plc Decided on Incentive Plans for the Group’s Key Employees
The Board of Directors of Olvi plc has decided to establish three new share-based incentive plans for the group’s key employees. The aim of incentive plans is to support the achievement of company’s targets, to retain the key employees at the company and to offer them incentive schemes that are based on earning and accumulating shares.
Performance Share Plan 2021–2025
The Performance Share Plan 2021–2025 consists of four performance periods, covering the financial years of 2021–2022, 2021–2023, 2022–2024 and 2023–2025, respectively.
In the plan, the target group is given an opportunity to earn Olvi plc series A shares based on performance. The Board of Directors decides on the plan’s performance criteria and targets to be set for each criterion at the beginning of a performance period. The potential rewards based on the plan will be paid after the end of each performance period.
During the performance periods 2021–2022 and 2021–2023, the rewards are based on the group’s cumulative EBIT in euro and sales volume growth of non-alcoholic products. The net amount of rewards to be paid based on the performance period 2021–2022 will amount to an approximate maximum total of 6100 Olvi plc series A shares, and based on the performance period 2021–2023, to an approximate maximum total of 10 000 Olvi plc series A shares.
During the performance periods 2021—2022 and 2021–2023, approximately 13 persons, including the CEO and other Olvi Management Team members, belong to the target groups of the performance periods.
Matching Share Plan 2021–2022
The Matching Share Plan 2021–2022 consists of one matching period, covering the financial years of 2021–2022. In the plan, the target group is given an opportunity to receive matching shares for their personal investment in Olvi plc series A shares. The rewards based on the plan will be paid after the end of the matching period.
The net amount of rewards to be paid from the matching period will amount to an approximate maximum total of 14 300 Olvi plc series A shares. Approximately 60 persons, including the CEO and other Olvi Management Team members, belong to the target group of the plan.
Restricted Share Plan 2021—2025
The reward from the Restricted Share Plan 2021—2025 is based on a valid employment or director contract and the continuity of the employment or service during a vesting period. The reward will be paid after the end of a 12–36-month vesting period. The plan is intended for selected key employees only.
The net amount of rewards to be allocated based on the plan during the years 2021–2025 will amount to a maximum total of 4 000 Olvi plc series A shares.
General
The rewards will be paid partly in Olvi plc series A shares and partly in cash. The cash proportions of the rewards are intended for covering taxes and tax-related expenses arising from the rewards to the participants. In general, no reward is paid if the participant’s employment or director contract terminates before the reward payment.
The Board of Directors has set a reward cap for the total amount of gross rewards payable to a participant during one calendar year based on all long-term incentive plans.
The Olvi Management Team member is obliged to hold at least 50 per cent of the shares received as a net reward from the new incentive plans, until the total value of the member’s shareholding in Olvi plc equals to 50 per cent of their annual base salary of the preceding year. Such number of Olvi plc series A shares must be held as long as the membership in the Management Team continues.
Olvi plc
The Board of Directors
Further Information:
Pentti Hakkarainen
Chairman of the Board
Tel. +358 40 5940 180
Distribution:
Nasdaq Helsinki Ltd
Key media
www.olvi.fi