CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 20 FEBRUARY 2019 AT 1:00 PM EET
Cargotec's Board of Directors has resolved on a new matching share programme for executives
The Board of Directors of Cargotec Corporation has resolved to establish a new share-based incentive programme directed to the Group executives. The aim is to align the objectives of the shareholders and the executives in order to increase the value of the company in the long-term, and to further strengthen the shareowner alignment by encouraging the executives to personally invest in the company's shares.
The prerequisite for earning a reward from the programme is that a participant fulfils a Share Ownership Prerequisite included in the plan by acquiring the company's shares, amounting to the value resolved by the Board.
If a participant's Share Ownership Prerequisite has been fulfilled and his or her employment or service in a company belonging to the Cargotec Group is in force at the time of the reward payment, he or she will receive matching shares as a reward.
The new Matching Share Programme 2019-2022 includes three matching periods, which will end on 30 April 2020, 31 March 2021 and 31 March 2022. The rewards earned on the basis of the programme will be paid partly in Cargotec class B shares and partly in cash after each matching period.
As a rule, no reward will be paid, if a participant's employment or service terminates before the reward payment. The shares paid as a reward in 2020 and 2021 may not be transferred during an approximate one-year lock-up period established for the shares. Furthermore, the company's share ownership recommendation for the Executive Board members is applied to the rewards to be paid in the programme.
The Matching Share Programme is directed to maximum seven Group executives in total, including the Chief Executive Officer. The individuals invited to participate in the programme are given the opportunity to invest a maximum total of 3.2 million euros in Cargotec's class B shares to be acquired from the market. The rewards to be paid on the basis of the Matching Share Programme 2019-2022 will amount up to an approximate maximum total of 110,000 Cargotec's class B shares. In addition, the reward includes a cash proportion that is intended to cover taxes and tax-related costs arising from the reward to the executives.
Cargotec Corporation
The Board of Directors
For further information, please contact:
Hanna-Maria Heikkinen, Vice President, Investor Relations, tel. +358 20 777 4084
Vesa-Pekka Lankinen, Vice President, Performance and Rewards, tel. +358 20 777 4113
Cargotec (Nasdaq Helsinki: CGCBV) enables smarter cargo flow for a better everyday with its leading cargo handling solutions and services. Cargotec's business areas Kalmar, Hiab and MacGregor are pioneers in their fields. Through their unique position in ports, at sea and on roads, they optimise global cargo flows and create sustainable customer value. Cargotec's sales in 2018 totalled approximately EUR 3.3 billion and it employs around 12,000 people. www.cargotec.com