Metso's Board of Directors decides to continue the long-term incentive plan for senior management
Metso Corporation's stock exchange release on December 13, 2016 at 6:25 p.m. EET
The Board of Directors of Metso has decided to continue the long-term share-based incentive plan for the Group's senior management, with a Performance Share Plan (PSP) as the main structure. In addition, the Board decided to continue the Restricted Share Plan (RSP) as a complementary share-based incentive structure for specific situations.
The aim of this long-term incentive plan is to align the interests of the management with those of the shareholders in order to increase the value of Metso and to commit the senior management to Metso by offering them a competitive long-term incentive plan in the company.
Performance Share Plan
The Performance Share Plan consists of annually commencing performance share plans, each with a three-year earning period. The commencement of each new plan will be subject to a separate approval by the Board. In accordance with the decision taken by the Board, PSP 2017-2019 will commence at the beginning of 2017 and potential share rewards will be delivered in the first half of 2020 if the performance targets set by the Board are achieved.
The potential share reward payable under the PSP 2017-2019 is based on the total shareholder return of Metso's share during calendar years 2017-2019. The plan may include a maximum of 100 employees and will comprise a maximum of 415,000 reward shares (gross before the deduction of applicable payroll tax).
Restricted Share Plan
The complementary Restricted Share Plan (RSP) consists of annually commencing restricted share plans, each with a three-year vesting period after which the allocated share rewards will be delivered to the participants provided that their employment with Metso continues until the delivery date of the share rewards. The commencement of each new plan is subject to a separate approval by the Board. The RSP 2017 will commence at the beginning of 2017 and any potential share rewards will be delivered in the first half of 2020.
The maximum number of shares that may be allocated and delivered within the RSP 2017 totals 40,000 shares (gross before the deduction of applicable payroll tax).
Metso applies a share ownership recommendation policy for the members of Metso Executive Team. In accordance with this policy at least fifty per cent of the share rewards (net shares after the deduction of applicable payroll tax) received by these individuals under the above plans shall be retained until the share ownership of the individual participant in Metso amounts to his/her annual gross base salary.
The incentive plans will have no diluting effect as no new shares will be issued in connection with them.
Metso is a world leading industrial company serving the mining, aggregates, recycling, oil, gas, pulp, paper and process industries. We help our customers improve their operational efficiency, reduce risks and increase profitability by using our unique knowledge, experienced people and innovative solutions to build new, sustainable ways of growing together.
Our products range from mining and aggregates processing equipment and systems to industrial valves and controls. Our customers are supported by a broad scope of services and a global network of over 80 service centers and about 6,400 services professionals. Metso has an uncompromising attitude towards safety.
Metso is listed on the NASDAQ OMX Helsinki, Finland, and had net sales of about EUR 2.9 billion in 2015. Metso employs over 12,000 persons in more than 50 countries. Expect results.
Further information, please contact:
Merja Kamppari, Senior Vice President, HR, Metso, tel. +358 20 484 3119
Eeva Sipilä, Chief Financial Officer, Metso, tel. +358 20 484 3011
VP, Investor Relations
NASDAQ OMX Helsinki Ltd
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Source: Metso Corporation via Globenewswire