Oriola-KD Corporation Stock Exchange Release 4 December 2015 at 10.00 a.m.
The Board of Directors of Oriola-KD Corporation Resolved on Key Personnel Long-Term Incentive Plan
The Board of Directors of Oriola-KD Corporation has resolved to establish a new share-based incentive plan directed to the Group key personnel (the Plan). The aim of the Plan is to combine the objectives of the shareholders and the key personnel in order to increase the value of the Company in the long-term, to retain the key personnel in the Company, and to offer them a competitive reward plan based on performance and accumulation of share ownership in the Company. The aim is also to harmonize the Company's incentive plans into a One-Platform Plan where the Company's Key Personnel Share Savings Plan (the OKShares) and Long-Term Incentive Plan are combined.
The Plan includes three performance periods, calendar years 2016, 2017 and 2018, and three vesting periods, calendar years 2017, 2018 and 2019, respectively. The Board of Directors of the Company will resolve on the Plan's performance criteria and on the required performance level for each criterion at the beginning of a performance period. Approximately 20 key persons, including the members of the Group Management Team, belong to the target group of the Plan.
The prerequisite for participation in the Plan and for receipt of reward on the basis of the Plan is that a key person has enrolled in the OKShares and makes the monthly saving from his or her fixed gross monthly salary, in accordance with the Rules of the OKShares in force.
The potential reward of from the performance period 2016 will be based on the Group's Earnings per Share (EPS). The rewards to be paid on the basis of the performance period 2016 correspond to the value of an approximate maximum total of 800,000 Oriola-KD Corporation Class B shares (including also the proportion to be paid in cash). The potential reward will be paid partly in Oriola-KD Corporation Class B shares and partly in cash in 2018. The cash proportion is intended to cover taxes and tax-related costs arising from the reward to a key person.
The member of the Group Management Team must hold 50 per cent of the net shares given on the basis of the entire Plan, until his or her shareholding in the Company in total equals the value of his or her gross annual salary. Such number of shares must be held as long as the key person holds a position as a Group Management Team member.
Oriola-KD Corporation
Eero Hautaniemi President and CEO
For further information, please contact: Eero Hautaniemi President and CEO tel. +358 (0)10 429 2109 e-mail: eero.hautaniemi@oriola-kd.com
Distribution: Nasdaq Helsinki Ltd. Key Media
Released by: Oriola-KD Corporation Corporate Communications Orionintie 5 FI-02200 Espoo www.oriola-kd.com
HUG#1971390
