Pihlajalinna establishes a share-based incentive programme

Pihlajalinna Plc                                Stock exchange release               15 February 2019 at 8.30 

Pihlajalinna establishes a share-based incentive programme 

The Board of Directors of Pihlajalinna Plc has approved the establishment of a share-based incentive programme for selected key employees of Pihlajalinna. The objective of the incentive programme is to align the interests of the key employees with those of Pihlajalinna’s shareholders and, thus, to increase the company value. The programme also aims at driving performance culture, retaining key employees and offering the key employees competitive compensation for excellent performance. 

The programme includes an overall five-year plan period and none of the share rewards received by the key employees thereunder may be sold or transferred prior to the year 2022. The key employee shall, in addition, make an investment in Pihlajalinna shares as a precondition for participation in the programme.

The programme consists of a fixed matching share plan which is based on the afore-mentioned individual share investment and which has a one-year retention period (calendar year 2019) as well as a performance matching plan consisting of three one-year performance periods, comprising the calendar years 2019, 2020 and 2021.

The fixed matching share plan comprises the individual key employee’s investment in Pihlajalinna’s shares and the delivery of one matching share for each invested share without consideration (gross before the deduction of the applicable payroll tax) in the calendar year 2020. Both the invested shares and the matching shares will be subject to a two-year transfer restriction.

The performance matching plan comprises the three separate one-year performance periods specified above. The potential share rewards will be delivered after the respective performance periods during the calendar years 2020, 2021 and 2022 respectively if the performance targets set by the Board of Directors are achieved. The maximum amount of performance-based share rewards payable based on each individual one-year performance period is two matching shares for each three shares invested by the key employee (gross before the deduction of the applicable payroll tax). A precondition for a key employee’s participation in the performance matching plan is the afore-mentioned investment in Pihlajalinna’s shares. The performance criteria applied to the performance matching plan are the adjusted EBIT of Pihlajalinna Group and key operative targets.

Eligible for participating in the share-based incentive programme are 25 key employees.If all the eligible key employees participate in the programme by fulfilling the investment precondition in full and if the performance targets set for the three performance periods are fully achieved, the maximum aggregate amount of share rewards that may be delivered based on the programme is approximately 369,000 shares (gross before the deduction of the applicable payroll tax).  

The aggregate maximum value of the programme, assuming that the eligible participants fulfil the investment requirement in full, is approximately EUR 3.8 million.

According to a share ownership recommendation applied by the company, each participant of the program who is a member of Pihlajalinna’s Group Management Team is expected to accumulate and, once achieved, maintain a share ownership in the company corresponding in value to the individual’s annual base salary. Each such individual is expected to retain at least fifty per cent of the shares received under the share-based incentive programme in his/her ownership until the above ownership level is fulfilled.

PIHLAJALINNA PLC 
Board of Directors
 

FURTHER INFORMATION
Mikko Wirén, Chairman of the Board of Directors, +358 40 660 9865

DISTRIBUTION
Nasdaq Helsinki
Major media
investors.pihlajalinna.fi

Pihlajalinna in brief
Pihlajalinna is one of the leading private social and healthcare services providers in Finland. The company serves private individuals, businesses, insurance companies and public sector entities, such as municipalities and joint municipal authorities. Pihlajalinna provides general practitioner services, specialised care, emergency and on-call services, a wide range of surgical services, occupational healthcare, dental care and wellbeing services. In addition, the company offers innovative social and healthcare service provision models to public sector entities.

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