Munksjö to establish a new long-term share value based incentive programme for senior executives and other key personnel

Helsinki, Finland, 2016-06-15 15:20 CEST (GLOBE NEWSWIRE) --

Munksjö to establish a new long-term share value based incentive programme for senior executives and other key personnel

The Board of Directors of Munksjö Oyj has approved a new long-term, share value-based incentive programme for Munksjö's senior executives and other key personnel. The objective of the programme is, by creating a long-term share value based incentive for the management, to increase the company value in the long term and to secure the alignment of the objectives of the company's management with the objectives of its shareholders.

The potential rewards from the 2016-2018 programme will be paid in the spring 2019, if the performance targets set by the Board of Directors are achieved.

The performance measure applied to the programme is the total shareholder return (TSR) of Munksjö's share in the three-year performance period. In addition to the fulfilment of the targets set for the above performance criterion, the payment of the reward is conditional on the achievement of a minimum EBITDA requirement set by the Board of Directors.

The potential rewards under the programme will be paid either in cash or in Munksjö shares as decided by the Board of Directors.

If the performance target set for the programme is achieved in full, the maximum value of rewards payable based on the programme corresponds to the value of approximately 580,000 shares (gross before the deduction of the applicable taxes).

The programme includes a cap maximising the gross reward payable based on the three-year programme to an amount corresponding to 200 per cent of the individual participant's annual base salary. The company, in addition to this cap applied to long-term incentive rewards, applies a combined cap to all variable pay paid in the company any given year. According to this cap, the aggregate value of all short-term and long-term incentive rewards paid in the company any given year (with the exception of possible project bonuses) may not exceed a specific percentage of the company's EBITDA, as determined by the Board of Directors.

Munksjö applies a share ownership policy for the members of Munksjö Management Team. In accordance with this policy the Management Team members should accumulate a share ownership in the company which corresponds to at least the individual Management Team member's annual base salary. To support the achievement of this share ownership level, at least fifty per cent of the LTI share rewards (net after the deduction of applicable payroll tax) received by these individuals under the programme shall be retained. In case of a LTI cash reward, at least fifty percent of the net cash received as a reward should be used to acquiring shares from the market. These two alternatives are valid until the share ownership of the individual Management Team member in Munksjö amounts to at least his/her annual base salary.

Board of Directors

Munksjö Oyj

For more information, please contact:

Anna Selberg, SVP Communications, tel. +46 70 323 10 32
Laura Lindholm, Head of Investor Relations, tel. +46 72 703 63 36

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