The Board of Directors of Valmet Corporation resolved on a key employee incentive plan
The Board of Directors of Valmet Corporation has approved a new share based incentive plan for Valmet's key employees. The aim of the new Plan is to combine the objectives of the shareholders and the key employees in order to increase the value of the Company, to commit the key employees to the Company, and to offer them a competitive reward plan based on holding the Company's shares.
The Plan includes three discretionary periods, which are the calendar years 2015, 2016 and 2017. The Board of Directors of the Company shall decide on the performance criteria and targets in the beginning of each discretionary period. The potential reward of the Plan from the discretionary period 2015 is based on EBITA % improvement and Services orders received growth %. The potential reward of the Plan from the discretionary period 2015 will be paid partly as Company shares and partly in cash in 2016. The proportion to be paid in cash is intended to cover taxes and tax-related costs arising from the reward to the key employee. As a rule, no reward is paid, if the key employee's employment or service ends before the reward payment.
Furthermore members of the Valmet Executive Team shall have a possibility to receive a matching share reward for the discretionary period 2015 provided that he or she owns or acquires the Company's shares up to the number determined by the Board of Directors by December 31, 2015. Reward receipt is tied to the continuance of employment or service of the Valmet Executive Team member upon reward payment.
The reward of the Plan may not exceed 120 percent of the key employee's annual total base salary. The shares paid as reward may not be transferred during the restriction period, which will end two years from the end of the discretionary period. Should a key employee's employment or service end during the restriction period, as a rule, he or she must gratuitously return the shares given as reward to the Company.
The Plan is directed to approximately 80 people. The rewards to be paid on the basis of the Plan are in total an approximate maximum of 616,000 shares in Valmet Corporation and a cash payment needed for taxes and tax-related costs arising from the shares.
Helsinki December 16, 2014
The Board of Directors
Further information, please contact:
Pasi Laine, President and CEO, Valmet Corporation, tel. +358 10 672 0001
Valmet Corporation is a leading global developer and supplier of services and technologies for the pulp, paper and energy industries. Our 11,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day.
Valmet's services cover everything from maintenance outsourcing to mill and plant improvements and spare parts. Our strong technology offering includes entire pulp mills, tissue, board and paper production lines, as well as power plants for bio-energy production.
The company has over 200 years of industrial history and was reborn through the demerger of the pulp, paper and power businesses from Metso Group in December 2013. Valmet's net sales in 2013 were approximately EUR 2.6 billion. Valmet's objective is to become the global champion in serving its customers.
Valmet's head office is in Espoo, Finland and its shares are listed on the NASDAQ OMX Helsinki Ltd.