17.8.2022 16:00:02 EEST | Norrhydro Group Oyj |
Company Announcement
The Board of Directors of Norrhydro Group Plc has decided to establish two new long-term share-based incentive schemes for the Group's key personnel. The target of the new schemes is to align the objectives of the company, shareholders and key employees to increase the value of the company in the long term, to retain key employees and to offer them competitive reward schemes based on the earnings and accumulation of the company's shares and share appreciation.
Share reward scheme 2023–2027
The 2023–2027 share reward scheme has three three-year vesting periods, the calendar years 2023–2025, 2024–2026 and 2025–2027. The Board of Directors of the company decides on the earning criteria of the scheme and the targets to be set for each criterion at the beginning of the vesting period.
For the 2023–2025 vesting period, the award is based on the primary vesting criteria, i.e. the Group’s cumulative revenue in 2023–2025 and average EBITDA in 2023–2025, and the secondary vesting criteria, i.e. the average share of the Group’s Digital Solutions business in the Group’s revenue in 2023–2025
The total rewards payable for the vesting period 2023–2025 correspond to a maximum value of approximately 180,000 shares in Norrhydro Group Plc, including the cash portion. The target group of the share reward scheme will comprise around 15 key employees in the 2023–2025 vesting period.
Share bonus scheme 2023–2025
The share bonus scheme offers target group key employees the opportunity to earn company shares as a reward by converting the performance bonus earned under the performance bonus scheme into shares. The scheme has three vesting periods: 2023, 2024 and 2025. The performance bonus converted into shares is multiplied by bonus multiplier before it is paid. The multiplier is 1.15.
Any bonus under the share bonus scheme will be paid after the one-year commitment period, no later than April 2025, 2026 or 2027. The number of shares available under the scheme depends on the performance bonus scheme, participation in the share bonus scheme, the performance achieved and the price of Norrhydro Group Plc ‘s shares at the end of the performance bonus scheme vesting period.
General
The rewards of the share reward and share bonus schemes will be paid partly in shares of Norrhydro Group Plc and partly in cash. The rewards paid in cash are intended to cover taxes and tax-like payments on the rewards paid to participants. As a general rule, no reward will be paid if the participant’s employment or management contract is terminated before reward has been paid.
A member of the company’s management team must own at least 50% of the net shares paid to him or her under the new schemes until the value of the CEO’s shareholding in the company equals the total value of his or her annual salary, and the value of the other members of the management team’s shareholding in the company equals half the total value of his or her annual salary. This number of shares must be held for as long as the membership of the Management Group continues.
Norrhydro Group Oyj
Board of Directors
Further information:
Yrjö Trög, CEO, Norrhydro Group Plc
Tel. +358 40 029 1229
Email: yrjo.trog@norrhydro.com
Approved adviser:
Translink Corporate Finance Oy
Jari Lauriala, Managing Partner
Tel. +358 40 091 8855
Email: jari.lauriala@translinkcf.fi
Sami Miettinen, Partner
Tel. +358 400 735 835
Email: sami.miettinen@translinkcf.fi
Distribution:
Nasdaq Helsinki Oy
Key media
https://www.norrhydro.com/fi
Norrhydro Group Plc in brief
Norrhydro, founded in 1985, is a Finnish pioneer in motion control, a provider of energy-efficient hydraulic cylinders and a system supplier specialising in high-quality, customised and energy-efficient hydraulic cylinders and demanding linear motion control systems and mobile machinery. The company has more than 35 years of experience in developing and manufacturing customised hydraulic cylinders and linear motion control systems for the most demanding conditions and environments. In 2021, the company had a turnover of EUR 24.7 million, an EBITDA of EUR 3.0 million and an operating profit of EUR 2.2 million.
Attachments
Download announcement as PDF.pdf
