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The Board of Directors of Vacon Plc resolved on a share based incentive plan 2014-2016


March 27, 2014 - London

Vacon Plc, Stock Exchange Release, 27 March 2014 at 11.45 a.m. (EET)

The Board of Directors of Vacon Plc has resolved on a new share-based incentive plan for the years 2014 - 2016 in the Vacon Group. In 2014, the target group of the Performance Share Plan consists of approximately 90 persons. The aim of said Performance Share Plan is to combine the objectives of the shareholders and the participants in order to increase the value of the Company, to commit the participants to the Company, and to offer them a competitive reward plan based on long-term shareholding in the Company. The Plan is a continuation for Vacon's previous share bonus schemes.

The Performance Share Plan includes three discretionary periods, calendar years 2014, 2015 and 2016. The Board of Directors of the Company decides on the Plan's performance criteria and on targets to be established for them at the beginning of each discretionary period. The potential reward pursuant to the Plan for the discretionary period 2014 is based on the Vacon Group's Revenues, Operating Profit and Rate of Capital Turnover. The potential reward from the discretionary period 2014 will be paid in 2015 as a combination of the Company's shares and cash. The purpose of the cash proportion of the reward is to cover taxes and tax-related costs arisen from the reward to the participant. As a main rule, no reward will be paid if a participant's employment or service ends before the reward payment.

If a participant's total compensation in 2014 exceeds the participant's annual gross salary multiplied by 3.5, the reward to be paid on the basis of the discretionary period will be reduced for such exceeding part. The total compensation means an annual salary with fringe benefits, an annual bonus and a reward under the Performance Share Plan collectively.

The shares paid as reward may not be transferred during the restriction period, which will end after two years from the end of the discretionary period. Should a participant's employment or service end during the restriction period, as a main rule, he or she must gratuitously return the shares given as reward to the Company. The members of the Vacon Group's Executive Management Team must hold a half of the shares received on the basis of the new incentive plan also after the end of the restriction period as long as the value of his or her shareholding in total corresponds to the value of his or her gross annual salary. Such number of shares must be held as long the member's employment or service in a Group company continues.

The rewards to be paid on the basis of the Plan for the discretionary periods 2014 - 2016 correspond to the value of a maximum total of 370,000 Vacon Plc shares (gross).

VACON PLC

Further information:

  • Vesa Laisi, President and CEO, phone +358 (0)40 8371 510, vesa.laisi(at)vacon.com
  • Sebastian Linko, Director, Corporate Communications and Investor Relations, +358 (0)40 8371 634, sebastian.linko(at)vacon.com

Vacon in brief

Vacon is driven by a passion to develop, manufacture and sell the best AC drives and inverters in the world - and provide customers with efficient product lifecycle services. Our AC drives offer optimum process control and energy efficiency for electric motors. Vacon inverters play a key role when energy is produced from renewable sources. Vacon has production and R&D facilities in Europe, Asia and North America, and sales offices in 30 countries. Further, Vacon has sales representatives and service partners in nearly 90 countries. In 2013, Vacon's revenues amounted to EUR 403.0 million, and the company employed globally approximately 1,600 people. The shares of Vacon Plc (VAC1V) are quoted on the main list of the Helsinki stock exchange (NASDAQ OMX Helsinki).

Driven by Drives, www.vacon.com

Distribution:

NASDAQ OMX Helsinki
Financial Supervisory Authority
Main media




This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Vacon Oyj via Globenewswire

HUG#1772134

GlobeNewswire

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