KONE Corporation, stock exchange release, December 18, 2015 at 1.30 p.m. EET
KONE's Board of Directors decides on new share-based incentive programs
KONE Corporation's Board of Directors decided at its meeting on 18 December 2015 that KONE will have two (2) separate share-based incentive plans going forward. The target groups and targets within the plans as well as possible rewards are decided upon annually. The share-based incentive plans are used in order to encourage KONE's key personnel to engage in 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 are not included in the plans.
Of the two separate share-based incentive plans, one is for the senior management of KONE (the President and CEO, members of the Executive Board and other top management), consisting of approximately 65 individuals. The second plan is for other key personnel of KONE, totaling approximately 425 individuals. The incentive plans will be part of their remuneration starting from the financial year 2016. According to the decision, the potential reward is based on the annual growth in sales and earnings before interest and taxes (EBIT) in both plans. However, KONE's Board of Directors has the possibility to change the basis of the target setting annually. The potential reward is to be paid as a combination of KONE class B shares and a cash payment equivalent to the taxes and similar charges that are incurred from the receipt of the shares. Both plans include a condition preventing participants from transferring the shares for a period of two years following the ending of each earning period. A long-term target for share ownership has been set as part of the plan for the senior management of KONE.
Following the decision, KONE does not grant new stock option plans. The current existing stock option plans 2013, 2014 and 2015 shall be carried out based on the original terms of these programs.
For further information, please contact:
Jukka Ala-Mello, Secretary to the Board, tel. +358 (0)204 75 4226
Secretary to the Board
KONE is one of the global leaders in the elevator and escalator industry. KONE'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. KONE provides industry-leading elevators, escalators, automatic building doors and integrated solutions to enhance the People Flow in and between buildings. KONE's services cover the entire lifetime of a building, from the design phase to maintenance, repairs and modernization solutions. In 2014, KONE had annual net sales of EUR 7.3 billion, and at the end of the year over 47,000 employees. KONE class B shares are listed on the NASDAQ Helsinki Ltd. in Finland.