Lehto Group Plc
Stock Exchange Release
20 December 2016 at 3.00 p.m. (EET)
The Board of Directors of Lehto Group Plc Resolved on Key Employee Incentive Plans
The Board of Directors of Lehto Group Plc has resolved to launch two new share-based incentive plans for the Group key employees. The aim of the plans is to combine the objectives of the shareholders and the key employees in order to increase the value of the Company in the long-term, to commit the key employees to the Company, and to offer them competitive reward plans based on earning the Company’s shares.
The long-term incentive plan offers the key employees belonging to the target group an opportunity to earn the Company’s shares as reward by converting the performance bonus to be earned in the performance bonus system into shares on the key employee’s request. The performance bonus converted into shares will be increased by a reward multiplier determined by the Board of Directors prior to the reward payment.
The potential reward from the long-term incentive plan will be paid to the key employees after a two-year restriction period partly in the Company’s shares and partly in cash. The cash proportion is meant for covering taxes and tax-related costs arising from the reward to the key employee.
The long-term incentive plan is directed to 70 key employees, in the maximum, including the members of the Group Management. The rewards to be paid on the basis of the performance periods 2016 and 2017 correspond to the value of an approximate maximum total of 1,000,000 Lehto Group Plc shares including also the proportion to be paid in cash, on the share price level on the date of the plan resolution, if all key employees belonging to the target group decide to convert their performance bonuses entirely into the shares.
Furthermore, the Board of Directors resolved on the Group’s new restricted share plan. The reward from the restricted share plan is based on a key employee’s valid and continuing employment or service during the restriction period. The reward will be paid after a restriction period lasting for one to three years, partly in the Company’s shares and partly in cash. The cash proportion is meant for covering taxes and tax-related costs arising from the reward to the key employee.
The restricted share plan is directed to 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 also the proportion to be paid in cash.
Lehto Group Plc
The Board of Directors
For more information:
Hannu Lehto, CEO
+ 358 500 280 448
Veli-Pekka Paloranta, CFO
+ 358 400 944 074