Cargotec’s Board of Directors has approved new share-based key employee incentive programmes
CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 20 DECEMBER 2023 AT 8:00 PM (EET)
Cargotec’s Board of Directors has approved new share-based key employee incentive programmes
The Board of Directors of Cargotec Corporation has resolved to establish a new share-based incentive programme directed to the key employees of Cargotec. The aim of the programme is to combine the objectives of the shareholders and the key employees in order to increase the shareholder value of the Company in the long-term, to commit the key employees to implement Cargotec’s strategy, and to offer them a competitive reward plan based on the earning of the Company’s shares.
The performance share programme includes calendar years 2024–2026 as a performance period. The performance period includes three measurement periods of one calendar year. For each measurement period, the Board of Directors will annually resolve the performance criteria and the required performance levels for each criterion. The performance share programme 2024-2026 is targeted to approximately 100 selected key employees, including the members of Cargotec Leadership Team.
The Board of Directors has resolved that for the key employees of the business areas Kalmar and Hiab, the potential reward of the programme from the measurement period 2024 will be based on the business areas’ earning per share (EPS). For the Cargotec Corporate key employees, the performance criteria is Cargotec’s earning per share (EPS). The rewards to be paid on the basis of the performance period 2024–2026 will amount up to an approximate maximum total of 222,000 Cargotec’s class B shares. In addition to the rewards payable in shares, the rewards include a cash portion which is intended to cover the taxes and tax-related costs arising to the key employees from the reward.
After the end of the performance period, the Board of Directors will confirm the cumulative amount of rewards earned from the measurement periods, and the potential rewards from the performance period 2024–2026 will be paid partly in Cargotec’s class B shares and partly in cash in 2027. As a rule, no reward will be paid, if the key employee’s employment or service ends before the reward payment.
In addition, The Board of Directors of Cargotec Corporation has resolved to establish a new restricted shares programme for calendar years 2024–2026. As a part of total compensation, additional restricted share grants can be allocated for selected key employees. The rewards to be paid on the basis of the programme will amount up to an approximate maximum total of 20,000 Cargotec’s class B shares. In addition to the rewards payable in shares, the rewards include a cash portion which is intended to cover the taxes and tax-related costs arising to the key employees from the reward.
Besides the earning opportunity specified for each participant in shares, the value of the rewards payable based on the incentive programmes is limited by a maximum cap which is linked to the company’s share price development.
Information about the impact which the planned separation of Cargotec’s core businesses Kalmar and Hiab into standalone companies will have on the incentive programmes will be provided in due course when additional information about the separation and its progress is provided.
Cargotec Corporation
The Board of Directors
For more information, please contact:
Laura Salminen, Vice President, Performance and Rewards, tel. +358 20 777 4000
Aki Vesikallio, Vice President, Investor Relations, tel. +358 40 729 1670
Cargotec (Nasdaq Helsinki: CGCBV) enables smarter cargo flow for a better everyday with its leading cargo handling solutions and services. Cargotec’s business areas Kalmar, Hiab and MacGregor are pioneers in their fields. Through their unique position in ports, at sea and on roads, they optimise global cargo flows and create sustainable customer value. Cargotec has signed the United Nations Global Compact Business Ambition for 1.5°C. The company’s sales in 2022 totalled approximately EUR 4.1 billion and it employs around 11,800 people. www.cargotec.com
