The Board of Directors of
The Performance Share Plan 2023-2027 consists of three performance periods covering the financial years 2023-2024, 2024-2025 and 2025-2027. The Board will decide annually on the commencement and details of the performance periods.
In the plan, the target group is given an opportunity to earn
The rewards from the performance period 2024-2025 are based on EBITDA, increase in passenger car tire production volume and reduction in direct CO2 emissions. The possible reward will be paid during the first half of 2027 after a one-year retention period in case the targets set by the Board of Directors for Performance Period 2024-2025 are met.
The President and CEO of the company and members of the Management Team are obliged to hold 50 per cent of the received net shares until the value of the participant's total shareholding in the company corresponds to the participant's annual gross salary. The shareholding amount must be maintained as long as the membership in the Management Team or the position as a President and CEO continues.
The value of the gross rewards to be paid from the performance period 2024-2025 will correspond to an approximate maximum total of 1,760,000
Restricted Share Plan 2024
The Board of Directors of
The commencement of each individual plan is subject to a separate approval by the Board of Directors.
A precondition for the payment of the share reward based on the Restricted Share Plan is that the employment relationship of a participant with
The next plan (RSP 2024-2026) within the Restricted Share Plan structure commences effective as of the beginning of 2024 and the potential share reward thereunder will be paid in the first half of 2027. The possible rewards paid based on RSP 2024-2026 correspond approximately to a maximum of 120,000 gross shares.
Payments for share-based plans that ended in 2023
The Board of Directors of
Performance Share Plan 2021-2023
The performance measure for the Performance Share Plan 2021-2023 was based on segments Earnings Per Share (EPS) and segments Return on Capital Employed (ROCE), both with an equal weight of 50%. Both targets did not meet the minimum level and thereby, no payments will be conducted.
Restricted Share Plan 2021-2023
The three-year restriction period of the Restricted Share Plan 2021-2023 ended after financial year 2023. Some key employees participate in the share-based incentive plan, including a member of the Management Team. The financial threshold value for segments Return on Capital Employed (ROCE) applied for the Management Team member was achieved. The rewards to be paid correspond to a total of 4,600
Other terms
The total number of shares of the Company will not change due to payments for share-based plans that ended in 2023.
The Board of Directors anticipates that no new shares will be issued based on the share-based incentive schemes and that the schemes will, therefore, have no dilutive effect on the registered number of the Company's shares.
Further information:
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https://news.cision.com/nokian-tyres/r/new-approved-performance-periods-for-long-term-incentive-plan-for-the-management-and-selected-key-em,c3923357
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