Finland's Suominen resolves on a share-based long-term incentive plan

The aim of the new plan is to combine the objectives of the shareholders and the persons participating in the plan in order to increase the value of the company in the long term, to bind the participants to the company, and to offer them competitive reward plans based on earning and accumulating the company’s shares, the company said in a press release.

The board of directors resolved that the potential reward for the PERFORMANCE PERIOD 2023–2025 will be based on the relative Total Shareholder Return (TSR). The maximum total amount of potential share rewards to be paid on the basis of the Performance Period 2023–2025 is 793,500 shares of Suominen, representing the gross reward before the deduction of taxes and tax-related costs arising from the reward. The board of directors will be entitled to reduce the rewards agreed in the LTI Plan if the limits set by the board of directors for the share price are reached.

If the targets of the plan are reached, rewards will be paid to participants in spring 2026 after the end of the performance period. The potential rewards from the performance period 2023–2025 will be paid partly in the company’s shares and partly in cash. The cash proportion is intended to cover taxes and tax-related costs arising from the reward to the participant. The company also has the right to pay the reward fully in cash under certain circumstances. As a rule, no reward will be paid, if a participant’s employment or service ends before the reward payment.

A member of the executive team must hold 50 per cent of the net number of shares given on the basis of the plan, as long as his or her shareholding in total corresponds to the value of half of his or her annual gross salary. The president and CEO of the company must hold 50 per cent of the net number of shares given on the basis of the plan, as long as his or her shareholding in total corresponds to the value of his or her annual gross salary. Such number of shares must be held as long as the participant’s employment or service in a group company continues.

Fibre2Fashion News Desk (GK)