Suominen Corporation's stock exchange release on February 6, 2024 at 9.15 a.m. EET
The Board of Directors of Suominen Corporation has resolved to establish a new share-based incentive plan for key employees of the group. The purpose of the plan is to align the interests of the company’s shareholders and key employees to increase the company’s value in the long-term, to commit key employees to implement the company's strategy, objectives and long-term interest, and to reward them for high performance.
The Performance Share Plan 2024–2028 consists of three performance periods, covering the financial years 2024–2026, 2025–2027 and 2026–2028 respectively. The Board of Directors will resolve annually on the commencement and details of a performance period.
In the plan, the target group has an opportunity to earn Suominen shares based on performance. The performance criteria of the performance period 2024-2026 are tied to Absolute Total Shareholder Return (weight 40%) covering the years 2024-2026, Relative Total Shareholder Return (weight 40%) covering the years 2024-2026, and operative performance and sustainability goal (weight 20%) covering the year 2024 and measuring the company’s target to improve its raw material efficiency. The potential rewards from the plan will be paid after the end of the performance period.
The value of the rewards to be paid on the basis of the plan corresponds to a maximum total of 1,090,349 shares of Suominen, including also the proportion to be paid in cash. The target group in the performance period 2024—2026 consists of 27 key employees, including the CEO and other members of the Executive Management Team.
The potential reward will be paid partly in Suominen’s shares and partly in cash. The cash proportion of the reward is intended to cover taxes and statutory social security contributions arising from the reward to the key employee. As a rule, no reward will be paid if the key employee’s employment or director contract terminates before the reward payment.
The Executive Management Team member must hold 50 per cent of the received shares, until the value of the Executive Management Team member’s total shareholding in Suominen equals to 50 per cent of their annual base salary for the calendar year preceding the payment of the reward. Respectively, the CEO must hold 50 per cent of the received shares, until the value of the CEO’s total shareholding in Suominen equals to 100 per cent of the CEO’s annual base salary for the preceding calendar year. Such number of Suominen shares must be held as long as the membership in the Executive Management Team or the position as the CEO continues.
SUOMINEN CORPORATION
The Board of Directors
For additional information:
Tommi Björnman, President & CEO, Suominen Corporation
Interview requests: Emilia Peltola, VP, Communications & Sustainability, tel. +358 50 540 9747
Suominen manufactures nonwovens as roll goods for wipes and other applications. Our vision is to be the frontrunner for nonwovens innovation and sustainability. The end products made of Suominen’s nonwovens are present in people’s daily life worldwide. Suominen’s net sales in 2022 were EUR 493.3 million and we have around 700 professionals working in Europe and in the Americas. Suominen’s shares are listed on Nasdaq Helsinki. Read more at www.suominen.fi.
Distribution:
Nasdaq Helsinki Ltd.
Key media
www.suominen.fi
