KONE Corporation’s Board of Directors decided at its 20 July 2010 meeting to grant stock option rights to approximately 430 employees of its global organization based on the authorization received from the shareholders meeting at March 1, 2010.
The stock options are granted for encouraging key personnel for long-term efforts to grow shareholder value and to increase their commitment to the company by offering them an internationally competitive incentive program. The company’s Board Members, CEO and Executive Committee Members are not included in the option plan.
The stock options are to be marked with the symbol 2010 and a maximum total of 3,000,000 options will be offered. Each stock option entitles its holder to subscribe for one (1) new or an existing company’s own class B KONE share. The class B shares for which these stock options can be exchanged constitute no more than 1.2 % of the company’s total number of shares.
The share subscription period for stock option 2010 will be April 1, 2013 - April 30, 2015. The share subscription period begins only if the financial performance of the KONE Group for financial years 2010-2012 based on the total consideration of the Board of Directors is equal to or better than the average performance of key competitors of KONE. If the above-mentioned prerequisite does not fulfill, stock options expire based on the consideration and in the extent and manner decided by the Board of Directors and the terms of the stock options. The share subscription price for the stock option is 35.00 euros per share and further reduced in situations mentioned in the terms, for example with dividends distributed before the subscription of the shares.
The terms of the Stock Option Plan 2010 are included in their entirety as an attachment and they are also available in the KONE website. Additional information on KONE’s compensation systems is available in the Corporate Governance Statement section of the KONE website at www.kone.com.
KONE is one of the global leaders in the elevator and escalator industry. The company has been committed to understanding the needs of its customers for the past century, providing industry-leading elevators, escalators and automatic building doors as well as innovative solutions for modernization and maintenance. The company's objective is to offer the best people flow experience by developing and delivering solutions that enable people to move smoothly, safely, comfortably and without waiting in buildings in an increasingly urbanizing environment. In 2009, KONE had annual net sales of EUR 4.7 billion and approximately 34,000 employees. KONE class B shares are listed on the NASDAQ OMX Helsinki Ltd in Finland. Founded in 1910, KONE celebrates its centennial anniversary in 2010.
For further information, please contact:
Jukka Ala-Mello, Secretary to the Board, tel. +358 (0)204 75 4226
Secretary to the Board
Executive Vice President
Marketing & Communications
Stock option 2010 terms