Lahti, Finland, 2017-02-15 10:00 CET (GLOBE NEWSWIRE) -- RAUTE CORPORATION STOCK EXCHANGE RELEASE 15 FEBRUARY 2017 at 11:00 a.m.
A NEW PERFORMANCE AND SHARE VALUE BASED LONG-TERM INCENTIVE PROGRAM ESTABLISHED FOR RAUTE’S TOP MANAGEMENT
The Board of Directors of Raute Corporation has decided on the establishment of a new performance and share value based long-term incentive program for Raute Group’s top management. The aim of the plan is to align the objectives of the company's management with the shareholders in developing the company value and to commit the management to achieving the strategic targets of the company through offering them a competitive long-term incentive scheme.
The program consists of annually commencing individual three-year plans. The individual plan may either comprise a three-year performance period or a one-year performance period followed by a two-year restriction period. The potential reward attained under the individual plan will be paid after the three-year plan period. The potential reward will either be paid in listed series A shares of Raute or in cash.
The commencement of each individual plan, the length of the performance period within the plan, the performance criteria, the eligible participants thereof and the earning opportunity is subject to a separate decision of the company’s Board of Directors in each case.
The first plan commences from the beginning of the year 2017. It comprises a one-year performance period, followed by a two-year restriction period. The potential rewards thereunder will be paid in the spring 2020 provided that the performance targets set by the Board of Directors are achieved.
Eligible to participate in the first plan are 12 persons belonging to the Group’s top management, including the members of Raute Group’s Executive Board. The performance criteria applied to the plan which commences from the beginning of the year 2017 are earnings per share (EPS) and net sales growth.
The earning opportunity within the program is capped. The value of the reward paid to the participant based on an individual three-year plan may not amount to more than twice the value which the maximum earning opportunity allocated to him/her had at the time the individual plan was launched.
If the performance targets set for the plan commencing from the beginning of the year 2017 are fully achieved, the aggregate amount of rewards to be paid under this individual plan, estimated based on the average share price of the last trading day preceding the date hereof, is approximately EUR 0.5 million (gross before the withholding of the applicable payroll tax).
According to a share ownership recommendation applied by the company each participant of the program is expected to accumulate and, once achieved, maintain a share ownership in the company corresponding to the value which is twice the value of the maximum gross earning opportunity allocated to him/her within the latest ongoing plan. Each participant is expected to use fifty per cent of the net reward received under the program for accumulating his/her share ownership until the above recommendation is fulfilled. The accumulation of the share ownership is carried out either by keeping share rewards received or by acquiring shares with the cash reward received under the program.
RAUTE CORPORATION
Tapani Kiiski
President and CEO
FURTHER INFORMATION:
Mr. Erkki Pehu-Lehtonen, Chairman of the Board of Directors, mobile +358 400 468 084
DISTRIBUTION:
Nasdaq Helsinki Ltd, main media, www.raute.com
RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute’s customers are companies operating in the wood products industry that manufacture veneer, plywood and LVL (Laminated Veneer Lumber). The technology offering covers machinery and equipment for the customer’s entire production process. As a supplier of mill-scale projects, Raute is a global market leader both in the plywood and LVL industries. Additionally, Raute’s full-service concept includes technology services ranging from spare parts deliveries to regular maintenance and equipment modernizations. Raute’s head office is located in the Nastola area of Lahti, Finland. Its other production plants are in Kajaani, Finland, the Vancouver area of Canada and in the Shanghai area of China. Raute’s net sales in 2016 were EUR 113.1 million. The Group’s headcount at the end of 2015 was 643.
More information on the company can be found at www.raute.com.