Lehto Group Plc: Lehto will continue share-based incentive plan for key employees in 2020
Lehto Group Plc
Stock exchange release
20 February 2020 at 8.00 a.m. (EET)
Lehto Group Plc’s Board of Directors has decided to continue the share-based long-term incentive plan for Group key employees, adopted in 2016. The aim of the plans is to align the objectives of the shareholders and the key employees in order to increase the value of the company in the long term and to commit key employees to the company.
Long-term incentive plan:
The long-term incentive plan has a one-year vesting period and a two-year restriction period. Targets are set for the key employees for each vesting period, and the employee’s performance bonus is calculated on the basis of the achievement of the targets. The performance bonus is converted into an increased number of shares multiplied by a bonus factor determined by the Board. The equivalent bonus is paid to the employee after the end of the two-year restriction period.
After the end of the restriction period, the reward is paid partly in the company’s shares and partly in cash. The cash proportion is intended to cover taxes and tax-related costs arising from the reward to the key employee.
The long-term incentive plan is directed at a maximum of 71 key employees, including the members of the Group Management. The rewards to be paid for the vesting period 2020 are estimated to correspond to the value of an approximate maximum total of 480,000 Lehto Group Plc shares, if all the performance bonuses of all the targeted key employees are converted into shares.
Lehto Group Plc
Board of Directors
Chief Financial Officer
+358 400 944 074