New plan for Raute’s top management long-term incentive plan
Raute,top management,long-term incentive plan
The company’s Board of Directors has decided on the commencement of a new individual plan for 2020 to 2022 within the performance and share based long-term incentive programme 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.