RAMIRENT PLC COMPANY ANNOUNCEMENT 27 March 2014 09:00
Vantaa, Finland, 2014-03-27 08:00 CET (GLOBE NEWSWIRE) —
New share-based incentive program for 2014–2016
The Board of Directors of Ramirent Plc has approved a new share-based incentive program for the executives of the company. The aim of the new program is to combine the objectives of the shareholders and the executives in order to increase the value of the company, to commit the executives to the company and to offer the executives a competitive reward program based on holding the Company’s shares. The new program includes matching shares and performance shares, and the program is targeted at approximately 60 executives for the earning period 2014—2016. The members of the Group Management Team are included in the target group of the new incentive program.
The new Program includes one earning period, calendar years 2014—2016. The potential reward from the program for the earning period 2014—2016 will be based on the Group’s Total Shareholder Return (TSR) and on the Group’s cumulative Economic Profit. In order to receive shares under the Program, the prerequisite for the top management is that an executive acquires and holds certain amount of the Company’s shares in accordance with the decision by the Board of Directors.
The potential reward from the earning period 2014—2016 will be paid partly in the Company’s shares and partly in cash in 2017. The cash payment is intended to cover the personal taxes and tax-related costs arising from the reward. No reward will be paid to an executive, if his or her employment or service with the Group Company ends before the reward payment.
The maximum reward to be paid on the basis of the earning period 2014—2016 will correspond to the value of up to 360,000 Ramirent Plc shares (including also the proportion to be paid in cash).
Ramirent’s disposal of own shares based on the performance share program
The Board of Directors of Ramirent Plc has on 26 March 2014 decided on a directed share issue for the reward payment from Ramirent Performance Share Program 2011.
In the share issue 24,674 existing Ramirent Plc shares will be issued and conveyed without consideration to the key persons participating in the Performance Share Program 2011 according to the terms and conditions of the plan. As the Program was set forth to combine the objectives of the shareholders and the key persons of the Group in order to increase the value of the company, there was an especially weighty financial reason for the directed share conveyance.
The Board of Directors of Ramirent Plc decided on the Performance Share Program 2011 in February 2011. The purpose of the plan is to combine the objectives of the shareholders and the key personnel in order to increase the value of the company, to commit the key personnel to the company, and to offer them a competitive reward program for exceptional performance based on holding the company shares.
The performance criteria for the Program was the development of the Group’s Total Shareholder Return (TSR), the Group’s average Return on Invested Capital (ROI) and the Group’s cumulative Earnings per Share (EPS). In addition to the performance shares, the reward includes a cash proportion intended to cover taxes and tax related costs arising from the reward to the key persons. The key persons are required to hold the shares received on the basis of the program as long as the value of the shares held by a key person in total corresponds to a value less than the person’s six months gross salary.
The decision on the directed share issue is based on the authorization granted to the Board of Directors by the Annual General Meeting of Shareholders held on 26 March 2013.
The shares are planned to be delivered by 31 March 2014. After the conveyance of the shares, the company shall hold a total of 973,957 of its own shares.
Vantaa 27 March 2014
RAMIRENT PLC
Magnus Rosén
President and CEO
FURTHER INFORMATION:
Jonas Söderkvist, CFO and EVP Corporate Function, tel. +358 (0)20 750 3248
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
The main media
www.ramirent.com
Ramirent is More Than Machines. We are a leading rental equipment group combining the best equipment, services and know-how into rental solutions that simplify customer business. We serve a broad range of customers, including construction and process industries, services, the public sector and households. In 2013, the Group’s net sales totalled EUR 647 million. The Group has 2,600 employees at 304 customer centres in 10 countries in the Nordic countries and in Central and Eastern Europe. Ramirent is listed on the NASDAQ OMX Helsinki Ltd.