CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 10 FEBRUARY 2015 AT 9.00 AM EET
Cargotec's Board of Directors has approved a long-term incentive programme for management
The Board of Directors has approved a new long-term incentive programme for key personnel of Cargotec for 2015 - 2018. The programme is similar in form to the one approved one year ago covering 2014 - 2017. The purpose of the programme is to increase Cargotec's profitability, efficient use of capital and shareholder value in the long term by attracting and retaining the required talent. The number of participants will be approximately 85 persons, including Cargotec's President and CEO and members of the Executive Board.
Similarly to the previous programme this new programme consists of two phases. The first phase includes specific financial performance targets for the year 2015 (business area or corporate return on capital employed, ROCE). The second phase consists of an additional earnings multiplier, which is based on Cargotec's total shareholder return (TSR) at the end of a three year performance period in 2017. The second phase serves to align the interests to that of the shareholders as well as retention. Eligible participants need to be employed by Cargotec in the beginning of 2018.
The potential reward will be delivered in Cargotec class B shares in the beginning of 2018. Gross reward, before deduction for the applicable taxes and employment related expenses, is in range of 25 - 120 percent of annual base salary for on target performance (for maximum performance the range is 75 - 360 percent of annual base salary). If the performance was on target for the maximum number of participants, the cost of the programme for the three year period would be approximately EUR 6.5 million (for maximum performance approximately EUR 19 million). If the financial performance threshold levels are not met, there will not be any incentive payment.
No new shares will be issued in connection with the above programme and therefore the programme will have no diluting effect.
For further information, please contact:
Eeva Sipilä, Executive Vice President, CFO, tel. +358 20 777 4104
Vesa-Pekka Lankinen, Vice President, Performance and Rewards, tel. +358 20 777 4113
Cargotec shapes the cargo handling industry for the benefit of its customers and shareholders. Cargotec's business areas MacGregor, Kalmar and Hiab are recognised leaders in cargo and load handling solutions around the world. Their global network is positioned close to customers and offers extensive services that ensure a continuous, reliable and sustainable performance according to customers' needs. Cargotec's sales totalled approximately EUR 3.4 billion in 2014 and it employs approximately 11,000 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki Ltd under symbol CGCBV. www.cargotec.com