Vantaa, Finland, 2016-02-11 08:30 CET (GLOBE NEWSWIRE) --
New Long-term incentive programme 2016
The Board of Directors of Ramirent Plc has approved a new share-based Long-term incentive programme for the executives of the company. The aim of the new programme 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 programme based on holding the Company’s shares. The new programme includes matching shares and performance shares, and the programme is targeted at approximately 60 executives for the earning period 2016—2018. The members of the Group Management Team are included in the target group of the new incentive programme.
The new programme includes one earning period, calendar years 2016—2018. The potential reward from the programme for the earning period 2016—2018 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 programme, 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 2016—2018 will be paid partly in the Company’s shares and partly in cash in 2019. 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 2016—2018 will correspond to the value of up to 484,168 Ramirent Plc shares (including also the proportion to be paid in cash).
Settlement of the Long-term incentive programme 2013
The Board of Directors of Ramirent Plc has on 10 February 2016 decided on a directed share issue for the reward payment from Ramirent Long-term incentive programme 2013.
In the share issue 12,635 existing Ramirent Plc shares will be conveyed without consideration to the key persons participating in the Long-term incentive programme 2013 according to the terms and conditions of the plan. As the programme 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 programme 2013 in March 2013. 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 programme for exceptional performance based on holding the Company shares.
The reward represents Matching shares earned on the basis of share ownership. No Performance shares were earned in the plan on the basis of the earning criteria. The key persons are required to hold the shares received on the basis of the programme 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 29 February 2016. The Company shall hold a total of 948,014 of its own shares after the conveyance of the shares.
Vantaa 11 February 2016
RAMIRENT PLC
Magnus Rosén
President and CEO
FURTHER INFORMATION:
Pierre Brorsson, CFO, +46 8 624 9541, pierre.brorsson@ramirent.com
DISTRIBUTION:
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www.ramirent.com
Ramirent is a leading equipment rental group combining the best equipment, services and know-how into rental solutions that simplify customer’s business. Ramirent serves a broad range of customer sectors including construction, industry, services, the public sector and households. Ramirent has operations in the Nordic countries and in Central and Eastern Europe. In 2015, Ramirent Group sales totalled EUR 636 million. The Group has 2,654 employees in 288 customer centres in 10 countries. Ramirent is listed on the NASDAQ Helsinki (RMR1V). Ramirent – More than machine®.