The Board of Directors of Kemira Oyj has decided on a new share-based incentive plan directed to the company's key personnel as part of the Group's incentive schemes. The new plan aims to align the goals of the Group's shareholders and key executives in the Group, in order to raise the value of the company. A competitive, ownership-based incentive plan has been designed as a means to achieve the goal, and to ensure the commitment of key management. The new incentive plan complies with the current development, whereby stock option plans are gradually replaced by schemes based on direct shareholding.
The incentive scheme is based on three performance periods, i.e. 2004, 2005 and 2006. The potential reward will be paid out during the year following the performance period. The criteria for reward payments shall be based on earnings per share (EPS) and return on capital employed (ROCE). The potential reward shall be paid as a combination of Kemira shares and cash payment.
There is an obligation to keep the potential shares earned for a minimum period of two years following the payment of each reward. However, the CEO and Members of the Management Board must keep any shares that they may have earned up to the worth of their annual salary for as long as they are employed by the company. The target group of the share-based incentive plan will be smaller than the earlier incentive compensation scheme for key personnel.
The number of shares which may be transferred via the incentive scheme is approximately 500,000 shares. The shares to be transferred can be in the company's own holding or they may be obtained in public trading, whereby the incentive plan shall have no dilution effect on share value.
For further information please contact:
Anssi Soila
Chairman of the Board of Directors
GSM +358 (0)40 500 6896
Kaj Friman, Group Treasurer
Sectetary to the Board of Directors
GSM +358 (0)50 62626