OUTOTEC OYJ STOCK EXCHANGE RELEASE MARCH 3, 2008 AT 2.00 PM
NEW INCENTIVE PROGRAM FOR OUTOTEC'S KEY PERSONNEL
The Board of Directors of Outotec Oyj has decided to establish a new share-based incentive program for Outotec's key personnel for the period 2008-2010.
The new incentive program comprises of three earning periods, which are calendar years 2008, 2009 and 2010. The number of shares granted as incentive depends on the achievement of the annual corporate growth targets defined by the Board of Directors for earnings per share, order backlog and the services and after sales business. The potential incentives for the earning period 2008 will be paid in 2009. Of the incentives, approximately half will be paid as Outotec's shares and half in cash.
In the earning period 2008, the incentive program concerns approximately 30 key employees. Those some 20 key employees who belong to Outotec's current share-based incentive program for the years 2007 and 2008, published on March 23, 2007, are not included in the new program during the earning period 2008. During the earning period 2009-2010 the incentive program concerns approximately 60 employees.
The maximum gross value of the new incentive program (2008-2010) will equal approximately 500,000 Outotec's shares (including the proportion to be paid in cash), of which for the earning period 2008 the maximum amount will equal 80,000 shares. With the current quotation for the company's share, the incentives for the earning period 2008 would be some EUR 3 million. However, the maximum value for the incentive in earning period 2008 may not be more than double from the closing price of Outotec's share (EUR 36.83) on February 29, 2008.
The earning period is followed by a two-year commitment period, during which the participant is not entitled to transfer or hand over the shares. If the participant's employment or service agreement ends during the commitment period, he or she must return all or a proportion of the received shares to the company as incentive without compensation. The Executive Committee members have an additional two-year commitment period when he or she must hold 40% of the shares granted. Furthermore, the CEO's commitment period continues until the end of his contract.
Tapani Järvinen, CEO
For further information:
Tapani Järvinen, CEO
tel. +358 20 529 2000
Rita Uotila, Vice President - Investor Relations
tel. +358 20 529 2003, mobile +358 400 954141
OMX Nordic Exchange Helsinki