OUTOTEC OYJ STOCK EXCHANGE RELEASE, March 1, 2016 AT 9.15 AM
Outotec's share-based incentive program 2016 - 2018
Outotec's Board of Directors has decided to adopt a new share-based incentive program for the company's key personnel. The program aims to increase Outotec's value as a company through aligning the objectives of shareholders and management, committing management to the company and offering a competitive reward for the management based on a long-term shareholding in Outotec.
The program comprises three earning periods: calendar years 2016, 2017 and 2018. The Board of Directors determines on an annual basis the maximum amount of shares to be allocated in each calendar year, participants of the program, amount of the maximum reward for each individual, earning criteria and targets established for them.
The program will cover approximately 150 Outotec individuals in the 2016 earning period, which has commenced on January 1, 2016. A precondition for the Executive Board members for being eligible for the share-based incentive program is that he or she also participates in Outotec's Employee Share Savings Plan.
The potential reward is based on the achievement of the targets set for net profit and free cash flow. The reward will be paid in 2017 in Outotec's shares and as a cash payment, which is intended to cover the taxes and tax-related costs arising from payment incurred by participants. The person must hold the earned shares for at least two years after the end of the earning period. If the person's employment ends during this engagement period, he or she has to return all or part of the earned shares to the company without compensation.
The maximum total reward for 2016 earning period, depending on the achievements of set targets, is 700,000 allocated Outotec shares and cash to cover income taxes. Final allocations will be decided in March 2016. Allocated shares for earning periods 2017 and 2018 will be decided by the Board of Directors on an annual basis for each earning period separately.
For further information please contact:
Kirsi Nuotto, Senior Vice President - Human Resources & Communications
tel. +358 20 529 2008