Cargotec's Board of Directors decides on incentive programme for executives
CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 5 MARCH 2010 AT 2:20 P.M. (EET)
The Board of Directors of Cargotec Corporation has decided to establish a new share-based incentive programme for Cargotec executives. The programme aims to ensure alignment of the objectives of shareholders and executives in order to increase the value of Cargotec, while committing the executives to the Company, and offering them a competitive incentive programme based on ownership in the Company.
The programme includes three earning periods, each of them lasting for three calendar years, and they commence in 2010, 2011 and 2012. The Board of Directors will decide on the earnings criteria and on targets to be established for them, as well as the maximum amount of the payable reward for each earning period. The earnings criteria for the earning period 2010-2012 are Cargotec's operating profit margin and sales of the fiscal year 2012.
The potential reward will be paid partly as Cargotec's class B shares and partly in cash in 2013, 2014 and 2015. The proportion to be paid in cash is intended to cover taxes and tax-related costs arising from the reward.
The programme prohibits the transfer of the shares within approximately two years from the reward payment, i.e. the length of the programme is five years for each share lot.
The rewards to be paid on the basis of the earning period 2010-2012 will correspond to the approximate value of a maximum total of 100,000 Cargotec class B shares (including also the proportion to be paid in cash). The members of Cargotec's Executive Board form the target group of the programme during the earning period 2010-2012.
The remaining earning periods 2010 and 2011 of the current share-based incentive programme 2007-2011 will not be commenced as the new programme replacing the current programme will be implemented as from the beginning of 2010. On the basis of the former programme, a total of 31,356 class B shares were paid as reward to key personnel for the first earning period 2007-2008. No rewards were paid for the second earning period 2009 as the targets established for the earnings criteria were not attained. A total of 387,500 series B shares were initially reserved for the programme.
For further information, please contact:
Outi Aaltonen, Senior Vice President, General Counsel, Secretary of the Board of Directors,
tel. +358 204 55 4249
Eeva Sipilä, Executive Vice President, CFO, tel. +358 204 55 4281
Minna Karhu, Vice President, Corporate Communications, tel. +358 204 55 4630
Cargotec improves the efficiency of cargo flows on land and at sea - wherever cargo is on the move. Cargotec's daughter brands, Hiab, Kalmar and MacGregor are recognised leaders in cargo and load handling solutions around the world. Cargotec's global network is positioned close to customers and offers extensive services that ensure the continuous, reliable and sustainable performance of equipment. Cargotec's sales totalled EUR 2.6 billion in 2009 and it employs more than 9,500 people. Cargotec's class B shares are quoted on the NASDAQ OMX Helsinki. www.cargotec.com