Incentive programs

Share-based incentive plans for the management and selected key persons

The Group’s management and key personnel are covered by the company’s share-based longterm incentive plan. The system consists of a performance-based share reward system (Performance Share Plan “PSP”) as the main structure and a conditional share reward system (Restricted Share Program “RSP”) as a supplementary share reward system. The purpose of the plan is to align the objectives of the owners and management to develop the company’s value and to commit the management and key personnel to the company and to the achievement of the company’s strategic goals by offering them a competitive long-term incentive plan.

Company’s Performance Share Plan currently includes three 3-year performance periods, calendar years 2021-2023, 2022-2024 and 2023-2025. For each period two performance indicators are adopted. The performance indicators of the Performance Share Plans 2021-2023 and 2022-2024 are Absolute Total Shareholder Return on Raute’s shares (Absolute TSR) with a weight of 70 percent and defined net sales targets with a weight of 30 percent. The performance indicators of the Performance Share Plan 2023-2025 are defined EBITDA targets with a weight of 60 percent and net sales targets with a weight of 40 percent.

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.

In addition to the Performance Share Plan, Board of Directors of the company has established a Restricted Share Program as a complementary share-based long-term incentive scheme for the company. The program consists of annually commencing individual share plans and the on-going first individual plan covers the years 2022-2024. The commencement of each individual plan is conditional on a separate decision of the Board of Directors.

On March 22, 2023, the Board of Directors decided on the commencement of a long-term incentive plan for the Group’s senior management and selected key persons. The decision includes a Performance Share Plan (“PSP 2023–2025”) as the main structure and a Restricted Share Plan (“RSP 2023–2025”) as a complementary structure. More information on the stock exchange release.

The rewards payable based on the Performance Share Plan and on the Restricted Share Program will at the company’s choice either be paid in listed A shares of Raute or in cash based on the value of the share reward at the time of payment. The payment of the reward is conditional on the individual’s continued employment or service relationship with Raute.

In accordance with the ownership recommendation of the company abides by, the members of the company’s Executive Board are expected to accrue and, after attaining, to retain in their ownership an amount of the company’s shares that equals, for the CEO, his/her gross annual fixed salary, and for the other Executive Board members, their six months’ gross fixed salary. The members of the Executive Board are 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 recommended level.


Expired option schemes and share-based incentive programs