A long-term share based incentive program 2014-2018 established for Raute's top management
RAUTE CORPORATION STOCK EXCHANGE RELEASE February 12, 2014 at 5:45 p.m.
A LONG-TERM SHARE BASED INCENTIVE PROGRAM 2014-2018 ESTABLISHED FOR RAUTE’S TOP MANAGEMENT
The Board of Directors of Raute Corporation has decided on the establishment of a new long-term performance based share incentive program (Performance Share Plan) for Raute Group’s top management. The aim of the plan is to align the objectives of the Company's owners and the management in order to i.a. develop the company value and to commit the management to the Company through offering them a competitive incentive system based on ownership of the Company’s shares.
The plan includes three individual share plans, each with the length of three years. Each share plan consists of a one-year performance period, the payment of the potential share reward in series A shares of the Company in the spring following the performance period and a two-year restriction period following the performance period during which the development of the value of the reward is based on the development of the value of the Company’s share. The participant of the program may not sell or otherwise transfer the shares received as a reward during the restriction period. The individual share plans commence in 2014, 2015 and 2016. The commencement of the share plans 2015 and 2016 is, however, subject to a separate decision of the Company’s Board of Directors.
The Board of Directors of the Company decides separately on the participants of each commencing share plan and on the performance criteria applicable to the performance period of each share plan, the target setting thereof and the target and maximum levels of the payable reward. The first share plan includes 11 members of the Group’s top management as participants, including the members of the Executive Board. The performance criteria of the first share plan are earnings per share (EPS) and revenue growth.
According to a share ownership recommendation by the Company each participant who is a member of the Executive Board is recommended to accumulate and, once achieved, maintain a share ownership in the Company corresponding in value with respect to the President and CEO annual, and with respect to the other Executive Board members six months’, fixed salary. Each participant subject to the above share ownership recommendation shall use half of the post-tax net shares received pursuant to the share based incentive program for fulfilling the above share ownership recommendation.
If a performance entitling to the maximum reward in the performance period 2014 of the first share plan is attained, the aggregate amount of share rewards to be paid based on the first share plan is at most EUR 0.4 million which based on the current share price corresponds to at most 60,000 series A shares of the Company. The above mentioned share amount refers to the gross amount of shares before the deduction of the applicable payroll tax from the share reward. The actual amount of shares to be delivered to the participants of the program is the net amount of the reward which remains after the withholding of the payroll tax.
RAUTE CORPORATION
Tapani Kiiski
President and CEO
FURTHER INFORMATION:
Mr. Erkki Pehu-Lehtonen, Chairman of the Board of Directors, tel. +358 400 468084
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd, main media, www.raute.com
RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL (Laminated Veneer Lumber). The technology offering covers machinery and equipment for the entire production process. As a supplier of mill-scale projects Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in Nastola, Finland. Its other production plants are in the Vancouver area of Canada, in the Shanghai area of China, and in Kajaani, Finland.
More information about the company can be found at www.raute.com.