Cargotec Corporation’s Board of Directors Decides on Incentive Program for Key Managers
1/17/2007 7:58 AM|
Stock Exchange Release, January 17, 2007 at 9.15 a.m. Finnish time
Cargotec Corporation's Board of Directors has decided on a new share-based incentive program for Cargotec's key managers for the period 2007—2011. The purpose of the program encouraging share ownership is to align the interests of key managers to Cargotec's strategy and financial targets as well as contribute to making them long-term shareholders of the Company. The program offers key managers a possibility to earn a reward in Cargotec class B shares based on accomplishment of set targets.
The incentive program consists of four earnings periods, of which the first is two years and the following three periods one year each. The Board of Directors decides on the target group of the earnings period and their maximum reward at the beginning of each earnings period.
Potential rewards from the incentive program during 2007—2011 are based on achievement of five-year net sales and operating income targets as defined in Cargotec's strategy. The rewards will be paid during 2009—2012 in both class B shares and cash, with the cash dedicated to cover possible taxes and tax-related payments resulting from the share rewards. The shares distributed as reward will contain a prohibition to hand over or sell the shares within one year of the end of an earnings period with the exception of the final earnings period when no prohibitions are included. The maximum amount to be paid out as shares is 387,500 class B shares currently held by the company as treasury shares.
The incentive program covers some 60 individuals.
Senior Executive Vice President and CFO
SVP, Investor Relations and Communications
For further information, please contact:
Mikael Mäkinen, President and CEO, tel. +358 204 55 4262
Kari Heinistö, Senior Executive Vice President and CFO, tel. +358 204 55 4542
Eeva Mäkelä, SVP, Investor Relations and Communications, tel. +358 204 55 4281
Cargotec Corporation is the world's leading provider of cargo handling solutions, which are used in local transportation, terminals, ports, distribution centers, and ships. Cargotec's operations are divided into three strong, global business areas: Hiab, Kalmar, and MacGREGOR, each of which is the market leader in its own segment. In 2005 Cargotec's net sales exceeded EUR 2.3 billion. The company employs some 8,000 people and has activities in more than 160 countries. Cargotec's class B shares are listed on the Helsinki Stock Exchange.