Metsä Board Stock Exchange Release 10 January 2017 at 5 pm EET
The Board of Directors of Metsä Board has resolved to continue the share-based incentive plan directed to corporate executives. The aim of the plan is to combine the objectives of the shareholders and executives in order to increase the value of Metsä Board, to commit the executives to perform the mutual strategy and to offer them a competitive reward plan based on share ownership.
The share plan 2017—2021 consists of three performance periods, namely calendar years 2017—2019, 2018—2020 and 2019—2021. The Board of Directors will resolve on the performance criteria and targeted performance levels for each criteria at the beginning of each performance period. The potential reward for the performance period 2017—2019 is based on the development of Metsä Board’s (50 %) and Metsä Group’s (50%) Return on Capital Employed (ROCE, %), as determined by the Board of Directors. The Board of Directors is entitled to reduce the rewards fully or partly if defined earnings or equity ratio criteria are not met, or if the reward, together with any short term bonus payment, would exceed the participant’s annual salary, or in the case of the CEO his annual salary multiplied by two.
The performance period is followed by a two-year restriction period during which the participant is not allowed to transfer or sell the shares. The potential reward from the performance period 2017—2019 is paid in the spring of 2020 in Metsä Board Corporation’s B series shares.
The target group of the plan for the performance period 2017—2019 consists of 20 participants, including the members of the Corporate Management Team as well as key individuals in sales, production and corporate administration. The rewards to be paid on the basis of the plan for the performance period 2017—2019 will amount to a maximum of 263,750 B shares. In addition, a cash proportion is included in the reward to cover taxes and tax-related costs arising from the reward. The estimated market value of the plan’s first performance period amounts to 1.7 million euros.
METSÄ BOARD CORPORATION
Further information:
Kari Jordan, Chairman of the Board of Directors, tel. +358 10 465 4262
Metsä Board is a leading European producer of folding boxboards and white linerboards made from fresh fibres. Its lightweight paperboards are developed as the perfect fit for consumer goods, retail-ready and food service packaging. The pure fresh fibres Metsä Board uses are a renewable resource, traceable to origin in northern forests.
The global sales network of Metsä Board supports customers worldwide, including brand owners, converters and merchants. In 2015, the company’s sales totalled EUR 2.0 billion, and it has approximately 2,600 employees. Metsä Board, part of Metsä Group, is listed on the Nasdaq Helsinki.