Stock Exchange Release

New share-based long-term incentive scheme for the management and key employees of Altia

Altia Plc Stock Exchange Release 7 February 2019 at 8:45 am EET

New share-based long-term incentive scheme for the management and key employees of Altia

Altia Plc Stock Exchange Release 7 February 2019 at 8:45 am EET

New share-based long-term incentive scheme for the management and key employees of Altia

The Board of Directors of Altia Plc has decided on the establishment of a new share-based long-term incentive scheme for the management and key employees of Altia Group.

The objectives of the share-based long-term incentive scheme are to align the interests of Altia’s management and key employees with those of the Company’s shareholders and, thus, to promote shareholder value creation in the long term, and to commit the management and key employees to achieving Altia’s strategic targets as well as the retention of Altia’s valuable key resources.

It consists of annually commencing individual performance share plans (PSP), each with a three-year performance period, followed by the payment of the potentially earned share reward. The commencement of each individual plan is subject to a separate Board approval.

The first plan

The first plan within the structure, PSP 2019–2021, commences as of the beginning of 2019 and the potential share reward thereunder will be paid in the spring 2022 provided that the performance targets set by the Board of Directors are achieved. The potential reward will be paid in listed shares of Altia.

The performance targets based on which the potential share reward under PSP 2019-2021 will be paid are the relative total shareholder return of Altia’s share and earnings per share (EPS).

Eligible to participate in PSP 2019–2021 are approximately 20 individuals.

If all the performance targets set for PSP 2019–2021 are fully achieved, the aggregate maximum number of shares to be paid based on this first plan is approximately 250 000 shares. This number of shares represents a gross earning, from which the applicable payroll tax is withheld and the remaining net value is paid to the participants in shares.

The aggregate gross value of this first plan, estimated based on the average share price of the last trading day preceding the date hereof, is approximately EUR 1.9 million.

The combined amount of variable compensation paid to an individual participant any given year, including the long-term incentive scheme and the short-term incentive scheme, may not exceed 120% of the individual' annual gross base salary.

If the individual’s employment with Altia Group terminates before the payment date of the share reward, the individual is, as a main rule, not entitled to any reward based on the plan.

Other terms

Altia applies a share ownership recommendation to the members of its Executive Management Team. According to this recommendation each member of the Executive Management Team is expected to retain in his/her ownership at least half of the net shares received under the share-based incentive schemes of Altia until the value of his/her share ownership in Altia corresponds to at least his/her annual gross base salary.  

The Board of Directors anticipates that no new shares will be issued based on the share-based incentive scheme and that the scheme will, therefore, have no dilutive effect on the registered number of the Company's shares.

Altia Plc

Board of Directors

Further information:

Sanna Suvanto-Harsaae, Chairman of Altia’s Board of Directors and Chairman of the Board’s HR Committee

Contacts:

Merja Kaukonen, Executive Assistant, tel. +358 40 5400592

Distribution:

Nasdaq Helsinki Ltd

Principal media

www.altiagroup.com

More information and contact:
Tua Stenius-Örnhjelm
Investor Relations Manager
tua.stenius-ornhjelm [at] altiagroup.com