Metso's Board of Directors decided on a new long-term incentive plan for the top management
Metso Corporation's stock exchange release on December 13, 2011 at 9:00 a.m. local time
The Board of Directors of Metso has decided on a new share-based incentive plan for the Group's top management. The aim of the new plan is to combine the objectives of the shareholders and the management in order to increase the value of the company, to commit the management to the company, and to offer them a competitive reward plan based on long-term shareholding in Metso.
The plan includes three performance periods, which are calendar years 2012, 2013 and 2014. Metso's Board of Directors shall decide on the performance criteria, targets and participants in the beginning of each performance period. The plan is targeted to approximately 100 persons in Metso management for the performance period 2012.
The potential reward of the plan from the performance period 2012 is based on the net sales growth of the services business, return on capital employed (ROCE) before taxes and earnings per share (EPS).
The potential reward of the plan from the performance period 2012 will be paid at the end of an approximately two-year vesting period in 2015, partly in the company's shares and partly in cash. The proportion to be paid in cash is intended to cover taxes and tax-related costs arising from the reward to the participants. If a participant's employment or service ends for reasons relating to the participant before the reward payment, no reward will be paid. The reward for each performance period of the plan may not exceed 120 percent of a participant's annual total base salary.
The potential rewards to be paid on the basis of the performance period 2012 will correspond to a maximum total of approximately 450,000 Metso shares. Final allocations and the maximum total number of shares will be decided in January 2012. The Metso shares to be transferred in possible rewards will be obtained in public trading, and therefore the incentive plan will have no diluting effect on the share value.
Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. We have about 29,000 employees in more than 50 countries. www.metso.com
For 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