Lassila & Tikanoja Announces Performance Share Plan for 2025-2027
Lassila & Tikanoja's Performance Share Plan for 2025-2027
Lassila & Tikanoja plc has taken an exciting step forward by establishing a new performance period for its Performance Share Plan. This strategic initiative, aimed at its key employees, underscores the company's commitment to sustainable growth and shareholder value.
Understanding the Performance Share Plan
The Performance Share Plan, devised in 2022, outlines a roadmap for the years 2023 through 2027. It encompasses three distinct performance periods designed to incentivize excellence among the company's top talent and align their interests with those of shareholders.
Key Performance Periods
Specifically, the newly defined period from 2025 to 2027 will play a pivotal role in shaping the company's future. In total, the plan consists of three performance windows: 2023–2025, 2024–2026, and 2025–2027. These windows are designed to track key performance indicators (KPIs) that matter most to investors and stakeholders alike.
Key Metrics for Success
During the 2025-2027 timeframe, the rewards accrued will be determined by various performance criteria which reflect the company's strategic objectives. These key metrics include:
- Relative total shareholder return (TSR) accounting for 30% of the period's evaluation
- Return on capital employed (ROCE) also at 30%
- Reduction of the carbon footprint across Scope 1, 2, and 3, contributing 20% to the overall assessment
- A revenue target contributing the remaining 20%
The Importance of Sustainability
These criteria not only focus on financial outcomes but also emphasize the company’s commitment to environmental, social, and governance (ESG) principles. By integrating sustainability into its performance metrics, Lassila & Tikanoja not only aims to boost profitability but also to enhance its ecological footprint positively.
Potential Rewards and Target Group
The anticipated rewards from the performance period 2025-2027 are substantial, potentially representing approximately 324,578 shares of Lassila & Tikanoja Plc. This figure also includes bonuses that may be paid out in cash, reflecting the company's flexible approach to employee compensation.
The target group for this performance period consists of about 50 highly skilled key employees. This group includes the Group's President and CEO as well as the members of the Group Executive Board. Their performance and contributions will directly influence how well the company meets its ambitious goals.
Company Overview: Lassila & Tikanoja
Lassila & Tikanoja operates within the service sector, focusing on the practical implementation of the circular economy. Their mission is to ensure that materials and resources stay in productive use for as long as possible, generating value not just for the customers but also for society at large. By enhancing the efficiency of resources, Lassila & Tikanoja strives to create sustainable growth, which in turn benefits its shareholders.
The organization is also dedicated to social responsibility. It promotes job creation for those facing employment challenges, ensuring a better future for many in the community. With approximately 8,160 employees and net sales amounting to EUR 802.1 million, Lassila & Tikanoja stands strong on the Nasdaq Helsinki market, represented by the ticker LAT1V.
Frequently Asked Questions
What are the goals of the Performance Share Plan for 2025-2027?
The primary goals include enhancing shareholder value through performance criteria such as TSR and ROCE, alongside sustainability metrics.
Who benefits from the Lassila & Tikanoja share plan?
Approximately 50 key employees including the Group's President and CEO participate in the plan.
How does the company measure success in its performance plan?
Success is measured using various metrics including shareholder return, return on capital employed, and carbon footprint reduction.
What is the significance of focusing on ESG criteria?
Incorporating ESG criteria reflects the company's commitment to sustainable practices and responsible business operations, appealing to modern investors.
What is Lassila & Tikanoja known for?
Lassila & Tikanoja is noted for its dedication to circular economy practices and enhancing resource efficiency while maintaining strong financial performance.
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