Lehto Group Plc: Lehto will continue share-based incentive plans for key employees in 2019
Lehto Group Plc
Stock exchange release
12 February 2019 at 7.35 pm (EET)
Lehto Group Plc’s Board of Directors has decided to continue the share-based incentive plans 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 70 key employees, including the members of the Group Management. The rewards to be paid for the vesting period 2019 are estimated to correspond to the value of an approximate maximum total of 400,000 Lehto Group Plc shares, if all the performance bonuses of all the targeted key employees are converted into shares.
Restricted share plan:
In the restricted share plan, the key employees’ project-specific performance bonuses can be converted into shares issued at a later date, if the employment relationship continues for the duration of the restriction period of 1-3 years. Also under this plan, the reward is paid after the end of the restriction period partly in the company’s shares and partly in cash.
The restricted share plan is directed at selected key employees only. The rewards to be paid on the basis of the restricted share plan correspond to the value of an approximate maximum total of 50,000 Lehto Group Plc shares including the proportion to be paid in cash.
Lehto Group Plc
Board of Directors
Veli-Pekka Paloranta, Chief Financial Officer
tel. +358 400 944 074