KONE Corporation, stock exchange release, January 24, 2013 at 1.30 p.m. EET
KONE Corporation's Board of Directors decided at its 24 January
2013 meeting to grant stock option rights to approximately 480
employees of its global organization based on the authorization
received from the shareholders' meeting on March 1, 2010. The
stock options are granted in order to encourage 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,
President and CEO, Executive Board Members and other key personnel
covered by KONE's other share-based incentive program are not
included in the option plan.
The stock options are to be marked with the symbol 2013 and a maximum total of 750,000 options will be granted. 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 0.3 % of the company's total number of shares. The share subscription period for the stock options 2013 will be April 1, 2015 - April 30, 2017. The share subscription period begins only if the financial performance of the KONE Group for the financial years 2013-2014 based on the total consideration of the Board of Directors is equal to or better than the average performance of the key competitors of KONE. If the above-mentioned prerequisite does not fulfill, the 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 58.25 euros per share and is 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 2013 are included in their entirety as an attachment and they are also available on KONE's website.
In addition, KONE Corporation's Board of Directors has decided to continue the share-based incentive plan for the years 2013-2015 to the company's senior management (President and CEO, members of the Executive Board and other top management), consisting of approximately 45 individuals. The potential reward is based on annually determined targets and the potential reward is to be paid as a combination of class B shares and a cash equivalent of incurred taxes and similar charges.
Additional information on KONE's compensation systems is available in the Corporate Governance Statement section on KONE' website at www.kone.com.
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 and Communications
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 2012, KONE had annual net sales of EUR 6.3 billion and approximately 40,000 employees. KONE class B shares are listed on the NASDAQ OMX Helsinki Ltd in Finland.