New Long-term Incentive Plan for Fiskars Group’s key senior leaders
Fiskars Corp. Stock Exchange Release February 6, 2015 at 9.00 EET
The Board of Directors of Fiskars Corporation has decided on a new long-term incentive plan for the Group’s Executive Board and other key personnel. The plan will form a part of Fiskars remuneration program for its key leaders, and the aim of the plan is to support the implementation of the company’s growth strategy and to align the objectives of key personnel with the shareholders to increase the value of the company.
The new long-term incentive plan consists of a share based plan (Share Plan) as well as a cash reward plan (Cash Plan), and initially it has a performance period of three calendar years, 2015-2017. The Group’s Chief Executive Officer Kari Kauniskangas and Chief Operating Officer, Chief Financial Officer Teemu Kangas-Kärki are participants in the Share Plan. They, along with approximately 30 other key senior leaders, including the rest of the Executive Board, are participants in the Cash Plan.
The amount of the reward paid to a key person depends on achieving the pre-established targets. No reward will be paid if targets are not met or if the participant’s employment ends before reward payment. The targets for the Share Plan are based on the company’s total shareholder return, while the targets for the Cash Plan are based on the growth of the company’s turnover and operating profit excluding non-recurring items.
If targets of the plan are reached, rewards will be paid to participants after the end of the performance period. In the Cash Plan, rewards for participants will be paid in cash. In the Share Plan, the reward will be paid in the company’s shares and as a cash payment which is intended to cover taxes and tax-related costs arising from the share reward. If all targets are reached, the maximum reward payable in shares on the basis of the 2015-2017 performance period would amount to a total maximum of 22,000 shares in the company. Shares to be awarded under the Share Plan will be acquired in public trading arranged by Nasdaq Helsinki, and thus the share plan is not expected to have a diluting effect on the ownership of the company’s shareholders.
The Share Plan participants are subject to a shareholding requirement. No shares earned through the Share Plan can be sold or otherwise conveyed by the participant until a minimum ownership requirement has been reached. The share ownership requirement is 100 % of annual gross base salary for the President and CEO and 50 % for other participants, including Fiskars shares otherwise owned.
The Board may, at its sole discretion, decide to extend the long-term incentive plan with two consecutive three-year performance periods that would start in 2016 and 2017, respectively. In that case, the Board will decide separately for each performance period the participants in the incentive plan and the maximum reward for each participant. The Board of Directors would also decide separately for each performance period the performance criteria and related targets.
Board of Directors
For more information, please contact:
General Counsel Päivi Timonen, tel. +358 204 39 5050
Fiskars 365 – celebrating centuries of pride, passion and design. Every day.
Established in 1649 as an ironworks in a small Finnish village, Fiskars has grown to be a leading global supplier of consumer products for the home, garden and outdoors. Available in more than 60 countries, Fiskars products solve everyday problems, making daily home, garden and outdoor projects easier and more enjoyable through superior performance and design. Fiskars is listed on Nasdaq Helsinki, and in 2014 the company’s net sales were EUR 768 million. The Group’s key international brands are Fiskars, Iittala and Gerber. www.fiskarsgroup.com