Helsinki, Finland, 2015-12-18 08:00 CET (GLOBE NEWSWIRE) -- CAVERION CORPORATION STOCK EXCHANGE RELEASE DECEMBER 18, 2015 AT 9:00 AM EET
New share-based long-term incentive plan for Caverion
Caverion's Board of Directors has approved a new long-term share-based incentive plan for the Group’s senior management. The new plan consists of a Performance Share Plan, complemented with a Restricted Share Plan for special situations. Both plans consist of annually commencing individual plans, each with a three-year period. The commencement of each new plan is subject to a separate decision of the Board.
The first plans will commence at the beginning of 2016 and any potential share rewards thereof will be delivered in the spring of 2019. If all targets of the Performance Share Plan will be met, the share rewards based on the first plans for 2016-2018 will comprise a maximum of approximately 728,000 Caverion shares (gross before the deduction of applicable payroll tax).
The share based incentive plan forms part of the incentive and commitment programme for the senior management of Caverion Group. The key aim is to align the interests of the shareholders and the senior management in order to promote shareholder value creation and to support Caverion in becoming a leading European provider of advanced and sustainable lifecycle solutions for buildings and industries. In addition, the aim is to commit the key senior management to the company and its strategic targets and to offer them a competitive reward plan based on the ownership of the company’s shares.
Performance Share Plan 2016-2018
Performance Share Plan 2016-2018 may include a maximum of approximately 100 members of senior management and key employees. The three-year plan period consists of a one-year operative financial performance period, followed by a two-year share price performance period. The potential share reward is based on the targets set for the year 2016 for Group revenue growth and Earnings per Share. If all targets will be met, the share rewards based on the first Plan for 2016-2018 will comprise a maximum of approximately 662,000 Caverion shares (gross before the deduction of applicable payroll tax). Final participant selection and maximum share allocations will be decided early 2016.
The Performance Share Plan contains a maximum value for the share reward payable to an individual participant. If the value of the share reward would at the time of payment exceed a maximum value set by the Board, the exceeding portion of the reward will not be paid. A person participating in the plan has the possibility to earn a share reward only if his/her employment continues until the payment of the reward.
Restricted Share Plan 2016-2018
Share allocations within the Restricted Share Plan 2016-2018 will be made for individually selected key employees in special situations. Under the complementary Restricted Share Plan each individual plan consists of a three-year vesting period after which the allocated share rewards will be delivered to the participants provided that their employment with Caverion continues until the delivery of the share reward. The maximum number of Caverion shares that may be allocated and delivered within the Restricted Share Plan 2016-2018 totals approximately 66,000 shares (gross before the deduction of applicable payroll tax).
Other information
Caverion applies a share ownership recommendation policy for the members of the Group Management Board, according to which the members should retain at least 50 per cent of the share rewards received (net shares after the deduction of applicable payroll tax) under the share based incentive plans until the share ownership of these individuals in Caverion amounts to at least his/her annual gross base salary.
The Board of Directors anticipates that no new shares will be issued in connection with the new incentive plan and, therefore, the plans will have no dilutive effect on the number of the company’s registered shares. The Board, under all circumstances, has the right to make adjustments and to amend terms of the above plans as stipulated in the respective terms and conditions of the plans.
For additional information, please contact:
Milena Hæggström, Head of Investor Relations, tel. +358 40 5581 328, milena.haeggstrom@caverion.fi
Merja Eskola, Senior Vice President, Human Resources, tel. +358 40 744 0990, merja.eskola@caverion.fi
CAVERION CORPORATION
Distribution: NASDAQ Helsinki, principal media, www.caverion.com
Caverion designs, builds, operates and maintains user-friendly and energy-efficient technical solutions for buildings, industries and infrastructures. Our services and solutions are used in commercial, industrial, public and residential buildings and processes ensuring business continuity, safe, healthy and comfortable conditions, optimised performance and cost control. We aim to be a leading European provider of advanced and sustainable life cycle solutions. Our strengths include technological competence and comprehensive services, covering all technical disciplines throughout the life cycle of the property and industrial plant. Our revenue for 2014 amounted to approximately EUR 2.4 billion. Caverion has about 17,000 employees in 12 countries in Northern, Central and Eastern Europe. Caverion’s shares are listed on Nasdaq Helsinki.www.caverion.com
