Nonwovens / Technical Textiles
Board of Directors of Suominen resolved on incentive plan for management and key employees
Performance Share Plan 2018 with earnings period 2019-2021
The new three-year earnings period of the Performance Share Plan includes calendar years 2019–2021. The Board of Directors of the Company decides on the Plan’s performance criteria and required performance levels for each criterion at the beginning of an earnings period. The Performance Share Plan is directed to approximately 20 people.
The potential reward of the Plan from the performance period 2019–2021 will be based on the Relative Total Shareholder Return (TSR). The rewards to be paid on the basis of the performance period 2019–2021 correspond to the value of an approximate maximum total of 729,000 Suominen Corporation shares (including also the proportion to be paid in cash).
The Board of Directors will be entitled to reduce the rewards agreed in the Performance Share Plan if the limits set by the Board of Directors for the share price are reached.
Reward Payment and Ownership Obligation for the Management
The potential rewards from the performance periods 2019–2021 will be paid partly in the Company’s shares and partly in cash in 2022. The cash proportion is intended to cover taxes and tax-related costs arising from the reward to the participant. As a rule, no reward will be paid, if a participant´s employment or service ends before the reward payment.
A member of the Corporate Executive Team must hold 50 per cent of the net number of Shares given on the basis of the Plan, as long as his or her shareholding in total corresponds to the value of half of his or her annual gross salary. The President & CEO of the Company must hold 50 per cent of the net number of Shares given on the basis of the Plan, as long as his or her shareholding in total corresponds to the value of his or her annual gross salary. Such number of Shares must be held as long as the participant’s employment or service in a group company continues.