Board of Directors of Ahlstrom-Munksjö decided on a new performance period under the long-term share-based incentive plan
AHLSTROM-MUNKSJÖ OYJ, STOCK EXCHANGE RELEASE, February 12, 2018, at 17:00 CET
Ahlstrom-Munksjö’s Board of Directors has today decided on a new performance period under the long-term share-based incentive plan announced in October 2017. The aim of the plan is to align the objectives of the company's shareholders and key personnel to increase the company's value and to commit key personnel to the company through an incentive system based on ownership of Ahlstrom-Munksjö shares.
The long-term incentive plan structure
The plan includes a rolling structure of individual performance share plans, each with a three-year performance period. The first performance period started as of 2017 and the Board has today decided on the commencement of a further plan period for 2018-2020. The performance criteria for the 2018-2020 performance period will be the Total Shareholder Return (TSR) including share price change and profit distribution during the performance period. Additionally, no reward will be paid in case an underlying EBITDA requirement is not met.
There will be approximately 65 key persons appointed as eligible to participate in the 2018-2020 plan.
The potential reward for the 2018-2020 plan will be paid in 2021. The reward will at the company’s choice either be paid in the form of company shares or in cash.
If the targets set for the 2018-2020 performance period of the plan are met, the estimated aggregate gross value of the rewards to be paid will be approximately EUR 3.6 million excluding the social costs, or, as an estimate, approximately 190,000 Ahlstrom-Munksjö shares, when calculated based on the trade volume weighted average quotation of the share of Ahlstrom-Munksjö during the month of January 2018. Should the maximum level of performance criteria be achieved, the estimated maximum gross value of shares to be paid will be approximately EUR 7.3 million excluding the social costs, or, as an estimate, approximately 390,000 Ahlstrom-Munksjö shares, when calculated based on the above-mentioned average quotation of the share during the month of January 2018.
The attained reward represents a gross earning, from which the applicable payroll tax is withheld and the remaining net value is delivered to the participants.
Other terms
All members of the Management Team shall accumulate and, once achieved, maintain a level of share ownership corresponding to their annual gross base salary. The members of the Management Team are expected to use at least fifty per cent of the net reward received under the long-term incentive plans for accumulating their share ownership until the above share ownership level has been achieved.
For further information, please contact:
Juho Erkheikki, Investor Relations Manager, tel. +358 50 413 45 83, juho.erkheikki@ahlstrom-munksjo.com
Ahlstrom-Munksjö in brief
Ahlstrom-Munksjö is a global leader in fiber-based materials, supplying innovative and sustainable solutions to customers worldwide. Our offerings include decor paper, filter media, release liners, abrasive backings, nonwovens, electrotechnical paper, glass fiber materials, food packaging and labeling, tape, medical fiber materials and solutions for diagnostics. Combined annual net sales are about EUR 2.15 billion and we employ 6,000 people. The Ahlstrom-Munksjö share is listed on the Nasdaq Helsinki and Stockholm. The company was formed on April 1, 2017 through the merger of Ahlstrom Corporation and Munksjö Oyj. Read more at www.ahlstrom-munksjo.com.