SRV Group Plc’s Board of Directors resolved share-based incentive plans for key personnel
SRV GROUP PLC STOCK EXCHANGE RELEASE 29 MARCH 2021 20.45 EET
SRV Group Plc’s Board of Directors resolved share-based incentive plans for key personnel
The Board of Directors of SRV Group Plc has resolved to establish a new share-based Long-Term Incentive Plan 2021–2025 and a share-based One-off Long-Term Incentive Plan 2021–2022 directed to the Group key personnel. The Long-Term Incentive Plans aim to combine the objectives of the shareholders and the key personnel in order to increase the value of the Company in the long-term, and to strengthen the key personnel’s commitment in the Company.
Long-Term Incentive Plan 2021–2025
The Long-Term Incentive Plan arrangement has three three-year performance periods, which begin yearly during 2021-2023. The calendar years are 2021–2023, 2022–2024 and 2023–2025. The Board of Directors of the Company will resolve on the plan's key persons and performance criteria at the beginning of each performance period. Approximately 30 key persons belong to the first performance period 2021-2023, including President and CEO Saku Sipola and members of Company’s management.
The potential reward from the performance period 2021–2023 will be based on the Group’s Total Shareholder Return (TSR) in relation to a separately selected reference group, level of the company’s indebtedness and share price increase. The rewards to be paid on the basis of the performance period 2021-2023 correspond to the value of an approximate maximum total of 4,400,000 SRV Group Plc’s shares (gross amount, of which the proportion to be paid as withholding tax will be deducted). The potential reward will be paid in 2024 in SRV Group Plc’s shares (net amount) and the company will account for the withholding tax to tax authorities on behalf of the key persons. The potential share reward to the President and CEO is subject to transfer restriction, which requires the shares to be held for two years from their reward.
One-off Long-Term Incentive Plan 2021–2022
At the same time, the Board of Directors of SRV Group Plc has resolved on a two-year One-off Long-Term Incentive Plan to enable the prolonging of the Long-Term Incentive Plan performance period to three years. The One-off Long-Term Incentive Plan arrangement has one two-year performance period, calendar years 2021–2022. Approximately 30 key persons belong to the target group of the plan, including President and CEO Saku Sipola and members of Company’s management.
The potential reward from the performance period 2021-2022 will be based on the Group’s operative cash flow and the Group’s Total Shareholder Return (TSR) during the two-year period. The rewards to be paid on the basis of the performance period 2021-2022 correspond to the value of an approximate maximum total of 4,400,000 SRV Group Plc’s shares (gross amount, of which the proportion to be paid as withholding tax will be deducted). The potential reward will be paid in 2023 in SRV Group Plc’s shares (net amount) and the company will account for the withholding tax to tax authorities on behalf of the key persons. The potential share reward to the President and CEO is subject to transfer restriction, which requires the shares to be held for two years from their reward.
For further information, please contact:
Johanna Metsä-Tokila, SVP, General Counsel, tel. +358 40 562 0408, johanna.metsa-tokila@srv.fi
Kristiina Sotka, SVP, Human Resources, tel. +358 400 100 599, kristiina.sotka@srv.fi
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SRV in brief
SRV is a developer and innovator in the construction industry. Our objective is a new lifecycle-wise reality where solutions related to construction ensure well-being, financial value and the benefit of users, residents and environment – for years and generations to come. Our genuine cooperation and enthusiasm for our work comes across in every encounter. Sustainability is reflected in all our activities.
Our company, established in 1987, is listed on the Helsinki Stock Exchange. We operate in growth centres in Finland and Russia. In 2020, our revenue totalled EUR 975.5 million. In addition to about 1,000 SRV employees, we employ a network of around 4,200 subcontractors.
SRV - Building for life