Metsä Board to continue share-based incentive plan for its key executives, offering them competitive reward plan based on share ownership and tied to corporate earnings criteria, related targets set by board at beginning of each earnings period
February 7, 2014
– Metsä Board Corporation Stock Exchange Release 7 February 2014 at 9 am EET
The Board of Directors of Metsä Board Corporation has resolved to continue the share-based incentive plan established in 2011 that is directed to Metsä Board Corporation’s key executives. The aim of the plan is to combine the objectives of the shareholders and the executives in order to increase the value of Metsä Board, to commit the executives to implement the mutual strategy, and to offer them a competitive reward plan based on share ownership.
The plan includes three new three-year earning periods, calendar years 2014–2016, 2015–2017 and 2016–2018. The Board of Directors will decide on the earnings criteria and related targets at the beginning of each earnings period. The potential reward for the earnings period 2014–2016 will be partly based on Metsä Board Group's Equity Ratio and the development of Return on Capital Employed (ROCE) and Operating result (EBIT) and partly based on Metsä Group’s corresponding indicators, all as determined by the Board of Directors. Each earnings period is followed by subsequent two-year restriction period during which the participant is not entitled to transfer or dispose of the shares.
The potential reward from the earning period 2014–2016 will in 2017 be paid partly in Metsä Board Corporation series B shares and partly in cash. The proportion to be paid in cash will cover taxes and other statutory costs arising from the reward.
At the beginning the first earnings period of the plan covers 8 persons including the members of the Metsä Board Corporate Management Board. The maximum reward to be paid for the first earnings period is in aggregate approximately 430,000 Metsä Board Corporation B-series shares.
METSÄ BOARD CORPORATION