Metso's Board of Directors decides to implement a new long-term incentive plan for senior management
Metso Corporation's stock exchange release on December 10, 2014 at 3:45 p.m. local time
The Board of Directors of Metso has decided on a new 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 establish a 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. The first plan (PSP 2015) will commence at the beginning of 2015 and potential share rewards will be delivered in the spring 2018 if the performance targets set by the Board are achieved.
The potential share reward payable under the PSP 2015 is based on the total shareholder return of Metso's share during 2015-2017. The PSP 2015 may include a maximum of approximately 100 employees and will comprise a maximum of 400,000 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 first plan (RSP 2015) will commence at the beginning of 2015 and any potential share rewards will be delivered in the spring 2018.
The maximum number of shares that may be allocated and delivered within the RSP 2015 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 leading process performance provider, with customers in the mining, oil and gas, and aggregates industries. Metso's cutting-edge services and solutions improve availability and reliability in minerals processing and flow control, providing sustainable process and profit improvements. Metso is listed on the NASDAQ OMX Helsinki, Finland. In 2013, Metso's net sales totaled EUR 3.8 billion. Metso employs approximately 16,000 industry experts in 50 countries. Expect results.
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