New share-based Long-term Incentive Plans for Fiskars Group’s key employees
Fiskars Corporation
Stock Exchange Release
December 10, 2020 at 16:15 EET
New share-based Long-term Incentive Plans for Fiskars Group’s key employees
The Board of Directors of Fiskars Corporation has decided on new share-based Long-term Incentive Plans for the Fiskars Group Leadership Team and other key employees. The plans include a Performance Share Plan and a Restricted Share Plan and they will form a part of Fiskars remuneration program for its key employees. The aim of the plans is to support the implementation of the company’s strategy and drive profitable growth and to align the objectives of key employees with the shareholders to increase the value of the company.
Performance Share Plan
The Performance Share Plan consists of annually commencing individual performance share plans, each with a three-year performance period, followed by the payment of the potential share reward. The Board of Directors will decide separately the commencement of each individual plan and their participants, the minimum, target and maximum rewards for each participant, as well as the performance criteria and related targets. The amount of the reward paid to a key employee depends on the achievement of the set targets. No reward will be paid if the targets are not met. Also, if the participant’s employment or service ends before reward payment, the participant is, as a main rule, not entitled to any reward. The potential reward will be paid in the company’s shares, after the deduction of the proportion that is required for covering taxes and tax-related costs due on the basis of the reward. However, the company may decide to pay the reward fully in cash.
The first 2021–2023 performance period commences as of the beginning of 2021 and the potential share reward thereunder will be paid during the first half 2024. For the first performance period, the plan has a maximum of 50 participants and the performance targets for the Plan relate to the company’s absolute total shareholder return and Group EBITA.
If all maximum performance targets are reached, the reward payable in shares on the basis of the 2021–2023 performance period would amount to a total gross maximum of 600,000 shares in the company. For reference purposes only (noting that the market value of the shares will constantly change), calculated based on the volume weighted average price of Fiskars share on December 9, 2020, the estimated total value of this first plan is approximately EUR 8.7 million.
Restricted Share Plan
The purpose of the Restricted Share Plan is to serve as a complementary long-term retention tool for individually selected key employees of Fiskars Group in specific situations. The Restricted Share Plan consists of annually commencing individual restricted share plans. The Board of Directors will decide separately the commencement of each individual plan. Each plan comprises an overall three-year retention period during which the Company may grant fixed share rewards to individually selected key employees. The company may choose to use a shorter retention period on a case by case basis within this overall three-year period. The granted share rewards will be paid after the retention period. No reward will be paid if the participant’s employment or service ends before reward payment. The reward will be paid in the company’s shares, after the deduction of the proportion that is required for covering taxes and tax-related costs due on the basis of the reward. However, the company may decide to pay the reward fully in cash.
The first plan for the years 2021–2023 commences as of the beginning of 2021 and the share rewards potentially granted thereunder will be paid latest during the first half of 2024.
The aggregate total maximum number of shares to be paid based on this first plan covering the years 2021–2023 is gross 150,000 shares. For reference purposes only (noting that the market value of the shares will constantly change), calculated based on the volume weighted average price of Fiskars share on December 9, 2020, the estimated total value of this first plan is approximately EUR 2.2 million.
Other terms
For the first plans for the years 2021–2023, the maximum value of the reward payable to each participant based on each of the afore described plans is limited by a cap linked to Fiskars share price development. Also, members of the Fiskars Group Leadership Team participating in the long-term incentive plan are subject to a shareholding requirement and must retain at least 50% of the net shares received based on the plans until their share ownership in Fiskars corresponds to at least 100% for the President and CEO and 50% for the other Fiskars Group Leadership Team members of their annual gross base salary.
As a starting point, shares to be awarded to key employees based on Performance Share Plan or Restricted Share Plan will be paid as existing shares of the company and thus the plans are not expected to have a diluting effect on the ownership of the company’s shareholders.
FISKARS CORPORATION
Corporate Communications
Media and investor contacts:
Corporate Communications, tel. +358 204 39 5031, communications@fiskars.com
Making the everyday extraordinary
Fiskars Group’s vision is to create a positive, lasting impact on our quality of life. Our brands Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford, and Wedgwood are present in people’s everyday lives – at home, in the garden, and outdoors. This gives us an opportunity to make the everyday extraordinary today, and for future generations. We have a presence in 30 countries, and our products are available in more than 100 countries. Our shares are listed on the Nasdaq Helsinki (FSKRS). Please visit us at www.fiskarsgroup.com for more information and follow us on Twitter @fiskarsgroup.