The Board of Directors of Tikkurila resolved on a new share-based incentive program
Tikkurila Oyj
Stock Exchange Release
April 29, 2016 at 9:05 a.m. (CET+1)
The Board of Directors of Tikkurila resolved on a new share-based incentive program
The Board of Directors of Tikkurila Oyj has approved a new share-based incentive program for the Group key employees. The new program consists of a Performance Share Plan 2015-2019 and a Matching Share Plan 2016-2018. The aim of the new program is to combine the objectives of the shareholders and the key employees in order to increase the value of the Company in the long-term, to bind the key employees to the Company, and to offer them competitive reward plans based on earning and accumulating the Company's shares.
Performance Share Plan 2015-2019
The Performance Share Plan includes three performance periods, calendar years 2015-2017, 2016-2018 and 2017-2019. Approximately 10 key employees, including the members of the Management Board, belong to the target group of the performance periods 2015-2017 and 2016-2018.
The potential reward of the plan from the performance periods 2015-2017 and 2016-2018 will be based on the Tikkurila Group's average EBITDA-based intrinsic values 2015-2017 and 2016-2018, respectively. The rewards to be paid on the basis of the performance periods 2015-2017 and 2016-2018 will amount to an approximate maximum total of 250,000 Tikkurila Oyj shares. In addition, the Company will pay taxes and tax-related costs arising from the reward to the participants in connection with the reward payment. The Board of Directors will resolve on the details of the performance period 2017-2019 at the beginning of the performance period.
The potential reward from the plan will be paid partly in the Company's shares and partly in cash in 2018, 2019 and 2020. The cash proportion is intended to cover taxes and tax-related costs arising from the reward to the participants. As a rule, no reward will be paid, if a participant's employment or service ends before the reward payment. The reward amounts to be earned through the plan will be capped if the limits set by the Board of Directors for the payable reward of a performance period are reached.
Matching Share Plan 2016-2018
The Matching Share Plan includes one vesting period, calendar years 2016-2018. The prerequisite for receiving reward on the basis of this plan is that a person participating in the plan acquires the Company's shares up to the number determined by the Board of Directors. Furthermore, receiving of reward is tied to the continuance of participant's employment or service upon reward payment. The reward from the plan will be paid partly in the Company's shares and partly in cash in 2019.
The Matching Share Plan is directed to selected key employees determined by the Board of Directors, who have not participated in the share-based plan launched in 2012. The rewards to be paid on the basis of the vesting period 2016-2018 will amount to a maximum total of 4,000 Tikkurila Oyj shares. In addition, the Company will pay taxes and tax-related costs arising from the reward to the participants in connection with the reward payment.
Vantaa April 29, 2016
Tikkurila Oyj
The Board of Directors
For further information, please contact:
Jari Paasikivi, Chairman of the Board of Directors
mobile +358 500 530 375, jari.paasikivi@orasinvest.fi
Tikkurila is the leading paints and coatings professional in the Nordic region and Russia. With our roots in Finland, we now operate in 16 countries. Our high-quality products and extensive services ensure the best possible user experience in the market. Sustainable beauty since 1862.