Incentive programs

Key principles of the valid long-term incentive plan

Share-based incentive plan 2017-2024

(LTI Plan 2019-2021, LTI Plan 2020-2022, LTI Plan 2021-2023 and LTI Plan 2022-2024)  

In February 2017, the Board of Directors of Raute Corporation resolved to implement a new performance-based, share-value-based, long-term incentive plan for the Group’s senior management. The purpose of the plan is to align the objectives of the owners and management in order to develop the company’s value, and to commit management to achieving the company’s strategic goals by offering a competitive long-term incentive plan.

The Performance Share Plan is made up of three three-year plans that begin every year. A single plan may consist of either a three-year earnings period or a one-year earnings period and the subsequent two-year vesting period. The possible bonus earned by virtue of a single plan shall be paid at the end of the three-year plan in question. The earnings opportunity is limited such that the value of the bonus, at the time of payment, to be paid to a participant based on a single three-year plan can be no more than double the value of the maximum earnings opportunity allocated to him/her when the plan commenced.

The company’s Board of Directors decides separately on when each plan commences, the length of its earnings period, the performance targets, the persons entitled to participate in the plan and the earnings opportunity.

Restricted Share Programme ("RSP")

The Board of Directors of Raute Corporation has decided on the establishment of a Restricted Share Programme (also "RSP") as a complementary share-based long-term incentive scheme for the company. The RSP structure is targeted to  individuall selected key employees of Raute Corporation and its group.  Read more on the stock exchange release published on July 27, 2022.

In accordance with the ownership recommendation the company abides by, each participant in the plan is expected to accrue and, after attaining, to retain in his/her ownership an amount of the company's shares that is double the value of the gross value of the earnings opportunity allocated to him/her in the most recent ongoing plan. Each participant in the plan is expected to use 50 per cent of the net bonus he/she receives from the plan to accrue his/her share ownership until such ownership meets the level recommended above. Share ownership accrues either by retaining ownership of bonuses received as shares or by acquiring shares through cash bonuses received under the plan.

Terms and Conditions of Raute Corporation's Long-term Incentive Programme 2017.

Expired option schemes and share-based incentive programs