Incentive programs

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

The Group management and key employees participate in the company’s share-based long-term incentive plans. The purpose of the share-based incentive plans 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.

Company’s Performance Share Plan currently includes three 3-year performance periods, calendar years 2020-2022, 2021-2023 and 2022-2024. The performance targets of the Performance Share Plan 2020-2022 are Earnings Per Share with a weight of 50 percent and Total Shareholder Return proportionate to the selected peer group with a weight of 50 percent. The performance targets of the plans 2021-2023 and 2022-2024 are Absolute Total Shareholder Return with a weight of 70 percent and net sales with a weight of 30 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, Raute Corporation’s 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”) as the main structure and a restricted Share Plan (“RSP”) 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