Ahlstrom-Munksjö’s Board of Directors has decided on a new performance period under the long-term share-based incentive plan announced on October 24, 2017. The Board of Directors has, in addition, decided on the establishment of a fixed matching share plan as well as on the establishment of a new earning period in the restricted share plan that was announced in March 28, 2019. The aim of the plans is to align the objectives of the company’s shareholders and key personnel to increase the company’s value and to commit the key personnel to the company through an incentive system based on the ownership of Ahlstrom-Munksjö shares.
The main long-term incentive plan structure
The Board has now decided on the commencement of a new plan period for 2020-2022 in the main long-term incentive plan structure, the Performance Share Plan. The Performance Share Plan is directed to approximately 100 persons from Ahlstrom-Munksjö’s top management and other selected key employees.
The performance criterion for the 2020-2022 performance period will be the Total Shareholder Return (TSR) including share price change and profit distribution during the performance period and earnings per share (EPS). The potential reward for the 2020-2022 plan will be paid in the spring 2023. The reward will be paid in the form of Ahlstrom-Munksjö shares.
If the targets set by the Board of Directors for the 2020-2022 performance period of the plan are fully met, the maximum aggregate number of shares to be paid based on this individual plan period is approximately 625 400 shares (gross before the withholding of all applicable taxes).
The estimated maximum aggregate value of the plan for the performance period 2020-2022 based on the current value of the company’s share is approximately EUR 9.6 million (without social costs).
Fixed Matching Share Plan
The Fixed Matching Share Plan is from 2020 onwards based on a rolling structure and its first plan period covers the years 2020 – 2022. A precondition of an eligible individual’s participation is a personal investment in Ahlstrom-Munksjö shares.
In the Matching Share Plan the participant will in the Spring 2023 receive one matching share (gross before the withholding of all applicable taxes) for each two invested shares free of charge after an approximately three-year restriction period in the spring 2023. A precondition for the receipt of the share reward is the continued holding of the invested shares and continued employment with Ahlstrom-Munksjö throughout the plan.
Eligible to participate in the plan are the same individuals who are eligible to participate in the Performance Share Plan.
If all the individuals eligible to participate in the Matching Share Plan make the share investment in full, the maximum aggregate amount of matching shares to be delivered based on the plan is approximately 127,450 shares (gross before the withholding of all applicable taxes).
The estimated maximum aggregate value of the Matching Share Plan based on the current value of the company’s share is approximately EUR 1.95 million (without social costs).
Restricted Share Plan
The Board has now decided on the commencement of a new plan period for 2020-2022 within the Restricted Share Plan structure. The potential share rewards under this plan will be paid in shares of Ahlstrom-Munksjö in the spring 2023.
The purpose of the Restricted Share Plan is to serve as a complementary long-term retention tool for individually selected key employees of Ahlstrom-Munksjö.
A precondition for the payment of the share reward based on the Restricted Share Plan is that the employment relationship of the individual participant with Ahlstrom-Munksjö continues on the payment date of the reward.
The aggregate maximum number of shares to be paid based on RSP 2020 – 2022 is approximately 62,000 shares (gross before the withholding of all applicable taxes).
The estimated maximum aggregate value of RSP 2020 – 2022 based on the current value of the company’s share is approximately EUR 0.95 million (without social costs).
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