Incentive schemes

Lassila & Tikanoja has a one-year share-based incentive programme that was initiated in 2017. The one-year share-based incentive programme that started in 2016 ended at the close of the financial year. 

Share-based incentive programme 2017

L&T’s Board of Directors decided at a meeting held on 13 December 2016 on a one-year share-based incentive programme to form a part of the incentive and commitment scheme for the company’s key personnel.

The earnings period began on 1 January 2017 and will end on 31 December 2017. Potential rewards will be paid during the year following the earnings period partly as shares and partly in cash. Rewards to be paid for the year 2017 will be based on the Group’s EVA result.

No reward will be paid if a key person’s employment ends before the reward payment. Any shares earned through the incentive programme must be held for a minimum period of two years following the payment. After that, the members of the Group Executive Board are still required to hold company shares with a value equal to their gross salary for six months and the other programme participants with a value equal to their gross salary for three months as long as they are employed by the company. 

A maximum of 31,900 L&T shares may be paid out on the basis of the programme. 

The shares to be paid out as potential rewards will be transferred from the shares held by the company, and therefore the incentive programme will have no diluting effect on the share value. The programme covers 10 persons.

Share-based incentive programme 2016

The company’s Board of Directors decided at a meeting held on 16 December 2015 on a one-year share-based incentive programme to form a part of the incentive and commitment scheme for the company’s key personnel.

The earnings period began on 1 January 2016 and ended on 31 December 2016. The rewards will be paid during the year following the earnings period partly as shares and partly in cash. The rewards to be paid for 2016 are based on the Group’s EVA result.

No reward will be paid if a key person’s employment ends before the reward payment. Any shares earned through the incentive programme must be held for a minimum period of two years following the payment. After that, the members of the Group Executive Board are still required to hold company shares with a value equal to their gross salary for six months and the other programme participants with a value equal to their gross salary for three months as long as they are employed by the company. 

A maximum of 34,200 L&T shares could be paid out on the basis of the programme. 

The shares to be paid out as potential rewards were transferred from the shares held by the company, and therefore the incentive programme had no diluting effect on the share value. The programme covered 10 persons.

A total of 16,110 shares for 2016 were transferred within the programme.