RAMIRENT PLC COMPANY ANNOUNCEMENT 27 March 2013 08:00

Vantaa, Finland, 2013-03-27 07:00 CET (GLOBE NEWSWIRE) —
 

 

 

New share-based incentive program for 2013–2015

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 50 executives for the earning period 2013—2015. 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 2013—2015. The potential reward from the program for the earning period 2013—2015 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 2013—2015 will be paid partly in the Company’s shares and partly in cash in 2016. 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 2013—2015 will correspond to the value of up to 390,244 Ramirent Plc shares (including also the proportion to be paid in cash).

A directed share conveyance for key persons of the group as a settlement of the Performance Share Program 2010

Based on the share issue authorisation granted by the AGM, the Board decided to convey 31,558 of the company’s own shares, currently held by the company, without payment to the key persons of the Group as a settlement of the Performance Share Program 2010. As the Program was set for 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 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 reward was received by approximately 40 key persons of the group. 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 shares are planned to be delivered by 2 April 2013. After the conveyance of the shares, the company shall hold a total of 998,634 of its own shares.

 

Vantaa 27 March 2013

 

RAMIRENT PLC

Magnus Rosén
President and CEO

 

FURTHER INFORMATION:
Magnus Rosén, President and CEO, Tel. +358 20 750 2845

Franciska Janzon, Director, Corporate Communications and IR, Tel. +358 20 750 2859

 

DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
The main media
www.ramirent.com

 

Ramirent is a leading equipment rental group delivering Dynamic Rental Solutions™ that simplify business. We serve a broad range of customers, including construction and process industries, shipyards, the public sector and households. In 2012, the Group’s net sales totalled EUR 714 million. The Group has 3,000 employees at 358 customer centres in 13 countries in the Nordic countries and in Central and Eastern Europe. Ramirent is listed on the NASDAQ OMX Helsinki Ltd.