Elisa's board resolves on incentive plan for key employees.
M2 EQUITYBITES-December 15, 2017-Elisa's board resolves on incentive plan for key employees
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Finnish telecommunications company Elisa Oyj (HEL:ELISA) announced on Thursday the approval by its board of directors of a new share-based incentive plan for the company's key employees.
Reportedly, the aim of this new plan is to align the objectives of the shareholders and the key employees in order to increase the value of the company in the long-term; to retain the key employees at the company and to offer them a competitive reward plan that is based on earning and accumulating the company's shares. Currently, this performance share plan is directed to approximately 200 people, including the members of the corporate executive board.
According to Elisa, this new performance share plan includes three three-year performance periods, calendar years 2018--2020, 2019--2021 and 2020--2022. The board of directors of the company will resolve on the plan's performance criteria and required performance levels for each criterion at the beginning of a performance period. The potential reward of the plan from the performance period 2018--2020 will be based on the group's EPS, on the new business development and the business must-win battles.
These rewards to be paid on the basis of the performance period 2018--2020 correspond to the value of a maximum total of 550,000 Elisa shares (including also the proportion to be paid in cash). The potential reward on the basis the performance period 2018--2020 will be paid partly in the company's shares and partly in cash in 2021. The cash proportion is intended to cover taxes and tax-related costs arising from the reward to the participant. As a rule, no reward will be paid, if a participant's employment or service ends before the reward payment.
In addition, the company's CEO and a member of the corporate executive board must hold a minimum of 50% of the net shares given on the basis of the plan, until the CEO's shareholding in the company in total corresponds to the value of his annual salary and the member's shareholding in the company in total corresponds to the value of half of his or her annual salary.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Dec 15, 2017|
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