Metso's Board of Directors decides to continue the long-term incentive plan for senior management
Metso Corporation's stock exchange release on December 19, 2013 at 4:15 p.m. local time
Metso's Board of Directors has decided to continue the share-based incentive plan approved in December 2011. The target group of the plan is the senior management of Metso and future Valmet. The aim of the plan is to align the objectives of shareholders and management to increase the value of the company, commit management to the company, and offer managers a competitive reward plan based on a long-term shareholding in the company.
The plan approved in 2011 includes three performance periods, equivalent to the 2012, 2013, and 2014 calendar years. The Board of Directors is responsible for setting the performance criteria and targets used at the beginning of each performance period. A maximum of 60 key employees in Metso and Valmet will be covered by the plan for the 2014 performance period.
In Metso, the potential reward generated by the plan for the 2014 performance period will be based on the net sales growth of the services business, Metso's return on capital employed (ROCE) before taxes, and Metso's earnings per share (EPS). Growth in Valmet's EBITA-% and growth in services orders received will act as the 2014 performance criteria for Valmet personnel.
Payment will be made at the end of an approximately two-year vesting period, in 2017, partly in company shares and partly in cash. The proportion paid in cash is intended to cover the taxes and tax-related costs arising from payment incurred by participants. Should a participant's employment or service end for reasons related to the participant concerned before payment falls due, no payment will be made. The reward for each performance period may not exceed 120% of a participant's annual total base salary.
In Metso, the potential rewards to be paid on the basis of the 2014 performance period will correspond to a maximum total of approximately 320,000 Metso shares. The maximum total number will be decided in April 2014.
In Valmet, the potential rewards to be paid on the basis of the 2014 performance period will correspond to a maximum total of approximately 197,000 Metso shares. The maximum total number, in the form of Valmet shares, will be decided in April 2014.
The shares to be transferred as part of possible rewards will be obtained in public trading, ensuring that the incentive plan will not have a diluting effect on Metso's or Valmet's share value.
Metso is a global supplier of technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas. Our 30,000 professionals based in over 50 countries contribute to sustainability and deliver profitability to customers worldwide. Metso's shares are listed on the NASDAQ OMX Helsinki Ltd.
Further information, please contact:
Merja Kamppari, Senior Vice President, HR, Metso, tel. +358 20 484 3119
Harri Nikunen, Chief Financial Officer, Metso, tel.+358 20 484 3010
VP, Investor Relations
NASDAQ OMX Helsinki Ltd