Pihlajalinna starts a share-based incentive program
Pihlajalinna Plc Stock Exchange Release 23 March 2022 at 9:00 a.m.
Pihlajalinna starts a share-based incentive program
The Board of Directors of Pihlajalinna Plc has adopted a share-based incentive program for the key persons of the company. The objective of the incentive program is to align the interests of the key persons with the interests of the Pihlajalinna shareholders in order to increase the value of the company. The program is to commit the key persons to the company and offer for the key persons a competitive compensation for superior performance. In its entirety the program is to form a six year program and the share rewards based on the program are not allowed to be disposed of prior to year 2025. In addition, in order to participate to the program a key person must invest into Pihlajalinna shares.
The program shall, based on the above investment into shares, comprise of a performance based share program, which is formed of four performance periods of one year each (calendar years 2022, 2023, 2024 and 2025).
Performance and quality based share program shall comprise of four separate performance periods of one year each. Potential share rewards shall be paid out after the above performance periods in years 2023, 2024, 2025 and 2026 provided that the performance and quality based targets as set by the board are reached. The maximum number of shares (gross amount prior to deduction of applicable withholding tax) for each one year performance period is defined in the allocation per participant. The above investment in the shares of Pihlajalinna is a condition for the participation of the key persons to the additional share program. Shares paid off as share rewards shall be subject to a two-year transfer restriction. The criteria for the performance and quality based additional share program are adjusted operating profit as well as key operative and quality indicators of Pihlajalinna Group.
At its commencement, a maximum of 42 key persons are entitled to participate to the share-based incentive program. In case all the persons entitled to participate do participate to the program by meeting the condition of investment in full and in case the performance targets set to the program are achieved in total, the total amount of the share rewards payable under the program is a maximum of approximately 1,100,000 shares (gross amount prior to the deduction of applicable withholding tax). In case the program materializes in full, the above amount of shares equals approximately to 4.8 per cent of the total amount of the shares of the company.
The total value of the share reward program, assuming that all persons entitled to participate fulfil their investment condition in full, is approximately 12.8 million euros.
The company applies to the group management team a share ownership recommendation according to which each of the members of the group management team are expected to accumulate and thereafter hold in the company shareholding which corresponds, as its value, to at least the amount of his/her fixed annual salary. Pursuant to the share ownership recommendation, each of the members of the management team are expected to maintain at least half of the shares obtained based on the share reward program until his/her shareholding has reached the above level.
Pihlajalinna Plc
Board of Directors
Further information:
Joni Aaltonen, Group CEO
Enquiries through Pihlajalinna IR communications:
Merja Kössi, Corporate Communications Manager, tel. +358 40 525 2845 or merja.kossi@pihlajalinna.fi
Distribution:
Nasdaq Helsinki
Keskeiset tiedotusvälineet
investors.pihlajalinna.fi
Pihlajalinna in brief
20-year-old Pihlajalinna (Nasdaq Helsinki: PIHLIS) is one of the leading private providers of social, healthcare and wellbeing services. The Group provides services to private individuals, companies, insurance companies and public sector entities, such as municipalities and joint municipal authorities, across Finland. The Group provides general practitioner and specialised care services, occupational healthcare and dental care services and also residential and wellbeing services, for example. The Group, in cooperation with the public sector, offers social and healthcare service provision models to public sector entities with the aim of providing high-quality services. Read more at investors.pihlajalinna.fi.