RAUTE CORPORATION STOCK EXCHANGE RELEASE FEBRUARY 12, 2020 at 5:15 p.m.
NEW PLAN FOR RAUTE’S TOP MANAGEMENT LONG-TERM INCENTIVE PLAN, LTI 2020-2022, COMMENCES
The company’s Board of Directors has decided on the commencement of a new individual plan (LTI 2020-2022) within the performance and share based long-term incentive program for the top management, decided on February 15, 2017.
The LTI 2020–2022 plan consists of a three-year earnings period based on two performance targets. One of the two performance targets is the Relative Total Shareholder Return (Relative TSR) of the series A share of Raute relative to a selected peer group and its weight is 50 per cent. The other performance target is the Earnings Per Share (EPS) and its weight similarly 50 per cent. Any rewards based on the performance targets will be paid in the spring of 2023 provided that the performance targets set by the Board of Directors are achieved. Twelve persons belonging to Raute Group’s top management are entitled to participate in the LTI 2020–2022 plan.
If the performance targets set for the plan commencing at the beginning of 2020 are fully achieved, the maximum aggregate amount of rewards paid based on the plan is approximately 18, 770 series A shares of the company and their estimated value approximately EUR 0.5 million, estimated based on the average share price on the trading day preceding this release. The total amount of rewards means their gross amount before the withholding of the applicable payroll tax.
Raute’s long-term incentive scheme consists of three-year plans that begin every year. The commencement of each individual plan is conditional on a separate decision of the company’s Board of Directors. The purpose of the plan is to align the objectives of the owners and management in order to develop the company’s value, and to commit management to achieving the company’s strategic goals by offering a competitive long-term incentive plan. The establishment of the long-term incentive scheme was announced with a release on February 15, 2017 and more up-to-date information is given in the Remuneration Statement published on the company’s website.
RAUTE CORPORATION
Tapani Kiiski
President and CEO
FURTHER INFORMATION:
Ms. Laura Raitio, Chair of the Board of Directors, tel. +358 50 386 0004
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, LVL (Laminated Veneer Lumber) and sawn timber. Its technology offering covers the entire production process for veneer, plywood and LVL and special measurement equipment for sawn timber. 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. The company’s other production plants are located in Kajaani, Finland, the Vancouver area of Canada, the Shanghai area of China and in Pullman, Washington, USA. More information about the company can be found at www.raute.com.