Vantaa, Finland, 2015-02-12 08:02 CET (GLOBE NEWSWIRE) --
Long-term incentive program 2015
The Board of Directors of Ramirent Plc has approved a new Long-term incentive program for the executives of the company. The aim of the new program is to combine the objectives of the shareholders and the executives in order to increase the value of the company, to commit the executives to the company and to offer the executives a competitive reward program based on holding the Company’s shares. The new program includes matching shares and performance shares, and the program is targeted at approximately 60 executives for the earning period 2015—2017. The members of the Group Management Team are included in the target group of the new incentive program.
The new program includes one earning period, calendar years 2015—2017. The potential reward from the program for the earning period 2015—2017 will be based on the Group's cumulative Economic Profit and on the Group's Total Shareholder Return (TSR). In order to receive shares under the program, the prerequisite for the top management is that an executive acquires and holds certain amount of the Company’s shares in accordance with the decision by the Board of Directors.
The potential reward from the earning period 2015—2017 will be paid partly in the Company’s shares and partly in cash in 2018. The cash payment is intended to cover the personal taxes and tax-related costs arising from the reward. No reward will be paid to an executive, if his or her employment or service with the Group Company ends before the reward payment.
The maximum reward to be paid on the basis of the earning period 2015—2017 will correspond to the value of up to 450,000 Ramirent Plc shares (including also the proportion to be paid in cash).
Settlement of the Long-term incentive program 2012
The Board of Directors of Ramirent Plc has decided on a directed share issue for the reward payment from Ramirent Long-term incentive program 2012.
In the share issue 13,308 existing Ramirent Plc shares will be issued and conveyed without consideration to the key persons participating in the Long-term incentive program 2012 according to the terms and conditions of the plan. As the program was set forth to combine the objectives of the shareholders and the key persons of the Group in order to increase the value of the company, there was an especially weighty financial reason for the directed share conveyance.
The Board of Directors of Ramirent Plc decided on the Long-term incentive program 2012 in February 2012. The purpose of the plan is to combine the objectives of the shareholders and the key personnel in order to increase the value of the company, to commit the key personnel to the company, and to offer them a competitive reward program for exceptional performance based on holding the company shares.
The performance criteria for the program was the development of the Group’s cumulative Economic Profit and the Group’s Total Shareholder Return (TSR). The key persons are required to hold the shares received on the basis of the program as long as the value of the shares held by a key person in total corresponds to a value less than the person’s six months gross salary.
The decision on the directed share issue is based on the authorization granted to the Board of Directors by the Annual General Meeting of Shareholders held on 26 March 2013.
The shares are planned to be delivered to the participants latest by 25 March 2015. After the conveyance of the shares, the company shall hold a total of 960,649 of its own shares.
Vantaa 12 February 2015
RAMIRENT PLC
Magnus Rosén
President and CEO
FURTHER INFORMATION:
Jonas Söderkvist, CFO and EVP Corporate Function, tel. +358 (0)20 750 3248
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
The main media
www.ramirent.com
RAMIRENT – MORE THAN MACHINES. We are a leading rental equipment group combining the best equipment, services and know-how into rental solutions that simplify customer business. We serve a broad range of customers, including construction and process industries, services, the public sector and households. In 2014, Group sales totalled EUR 614 million. The Group has 2,600 employees at 302 customer centres in 10 countries in the Nordic countries and in Central and Eastern Europe. Ramirent is listed on the NASDAQ Helsinki Ltd.