OUTOTEC OYJ STOCK EXCHANGE RELEASE DECEMBER 11, 2018 AT 5.00 PM
Outotec's share-based incentive program 2019 - 2021
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: starting in the beginning of years 2019, 2020 and 2021. The Board of Directors determines on an annual basis the length of the earning period (1-3 years), the maximum number of shares to be allocated in each earning period, the participants of the program, the amount of the maximum reward for each individual, the earning criteria and the targets established for them.
The program will cover approximately 70 Outotec individuals in the 2019 earning period, which will commence on January 1, 2019. 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 EBIT and free cash flow. The reward will be paid after three (3) years of the beginning of the earning period by the end of April 2022 at the latest 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. No reward is payable if the person's employment ends before the payment of the reward.
The maximum total reward for the 2019 earning period, depending on the achievement of set targets, is 670,000 allocated Outotec shares and cash to cover income taxes. Final allocations will be decided in February 2019. Allocated shares for earning periods 2020 and 2021 will be decided by the Board of Directors on an annual basis for each earning period separately.
For further information please contact:
Kaisa Aalto-Luoto, Senior Vice President - Human Resources & Communications
tel. +358 20 529 4005