Innovative Share-Based Incentive Plan by Rapala VMC Corporation
Rapala VMC Corporation Launches New Incentive Initiative
Rapala VMC Corporation has taken an exciting step forward by introducing a novel share-based incentive plan aimed at enriching the future of the company. This initiative seeks to synchronize the aims of shareholders with the ambitions of key employees, creating a lasting impact on the company’s overall value. By fostering a commitment to the corporate strategy and ensuring that key employees are motivated, this plan is designed to bolster long-term success.
Details of the Performance Share Plan
The newly introduced Performance Share Plan spans across three distinct performance periods—2025 to 2027, 2026 to 2028, and 2027 to 2029. Each year, the Board of Directors will evaluate and confirm the specifics of each period, ensuring the plan remains aligned with the evolving dynamics of the market. By providing an opportunity for employees to earn shares based on their performance, the plan encourages personal investment in the success of Rapala VMC.
Target Group and Performance Criteria
For the initial performance period, which runs from 2025 to 2027, about 60 key personnel, including Management Team members and the CEO, will be included. Performance metrics such as Leverage, EBIT, and Total Shareholder Return will shape the criteria for awarding shares. Following the completion of each performance phase, rewards will be allocated based on the predetermined achievements.
Reward Structure and Employee Commitment
The anticipated reward for the first performance period corresponds to a maximum of 544,000 shares of Rapala VMC, which will be distributed as a mix of shares and cash. This cash component is intended to help employees cover taxes and social security obligations related to the rewards. However, should a key employee's contract come to an end, they will no longer be eligible for rewards under this plan.
Holding Requirements for Management Personnel
In line with the commitment to maintain a vested interest in the company, Management Team members are required to retain at least 50% of the shares received until their personal holdings equal 50% of their annual salary from the previous year. Similarly, the CEO is tasked with holding onto 50% of their shares until their holdings meet 100% of their annual base salary. This requirement is designed to ensure that leadership remains fully engaged in the long-term success of Rapala VMC.
About Rapala VMC Corporation
Rapala VMC Corporation stands as a global leader in the fishing tackle industry, boasting the largest distribution network in the sector. With a stronghold in various kinds of fishing gear, including lures and hooks, the company operates manufacturing plants in several countries, such as Finland, France, Estonia, and the UK. Renowned brands under the Rapala VMC umbrella include Rapala, VMC, Sufix, and many more. The Group recorded impressive net sales of EUR 221 million in the last financial year and employs approximately 1,400 individuals spread across around 40 nations. The stock of Rapala VMC Corporation has been publicly traded on the Nasdaq Helsinki stock exchange since 1998.
Contact Information
For more inquiries or details regarding the new incentive plan, please reach out to Tuomo Leino, Investor Relations, at +358 9 7562 540.
Frequently Asked Questions
What is the purpose of Rapala VMC's new incentive plan?
The plan aims to align the interests of key employees with those of shareholders, fostering long-term corporate growth.
Who is included in the target group for the incentive plan?
Approximately 60 key employees, including members of the Management Team and the CEO, are targeted for this plan.
What performance metrics will be used to determine rewards?
The performance criteria will include Leverage, EBIT, and Total Shareholder Return for the designated periods.
What is the structure of the potential rewards?
Rewards may consist of a combination of Rapala VMC shares and a cash component to cover taxes and social security contributions.
How long must employees hold their shares?
Management Team members must hold 50% of shares until their value matches 50% of their annual salary, while the CEO must match 100%.
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