Incentive programs

Key principles of the valid long-term incentive plan

Share-based incentive plan 2017-2024

(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.

Terms and Conditions of Raute Corporation's Long-term Incentive Programme 2017. Terms and Conditions of the Long-term Incentive Programme 2021-2023.

Restricted Share Programme ("RSP")

The Board of Directors of Raute Corporation published on July 27, 2022 its decision 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 individually selected key employees of Raute Corporation and its group.

The objectives of the Restricted Share Programme are to retain, motivate and reward individually selected key employees of Raute as well as to align their interests with those of Raute’s shareholders by creating a long-term equity interest for these individuals and, thus, to increase Raute’s shareholder value in the long term.

The Restricted Share Programme consists of annually commencing individual share plans. The commencement of each individual plan is conditional on a separate decision of the Board of Directors.

Each individual plan comprises an overall three-year plan period within which the company may grant fixed share rewards to individually selected key employees with a retention period of up to three years.

The share reward will be paid after the retention period applied to the respective individual share grant. The company may choose to pay the granted share rewards in one or several tranches within the limits of the overall three-year plan period.

The first individual plan within RSP, covering the years 2022-2024 (RSP 2022-2024), commences as of the beginning of the year 2022. The aggregate maximum number of shares which may become payable based on RSP 2022–2024 is 72 000 shares (referring to gross reward from which the applicable payroll tax is withheld).

Members of Raute Group’s Executive Board may be covered by the Restricted Share Programme.

The rewards payable based on RSP will at the company’ choice either be paid in listed class A share 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.

The maximum value of the reward payable to the participants based on RSP is limited by a cap which is linked to Raute’s share price development with a multiplier set by the company.

Terms and conditions of the Restricted Share Programme.

Expired option schemes and share-based incentive programs