Nokian seeks to increase company value with incentive programme
Approximately 40 Nokian Tyres plc staff members – people identified as “key” employees – will benefit from an incentive programme approved by the company’s Board of Directors. According to Nokian, the aim of the programme is to combine shareholder and key employee objectives in order to “increase the value of the company, to commit the key employees to the company, and to offer them a competitive reward plan based on earning the company’s shares.”
The programme covers three performance periods, namely the 2013, 2014 and 2015 calendar years. Nokian’s Board of Directors will decide upon the performance criteria and targets for each performance period before it commences.
The potential reward from the 2013 performance period will be based on Nokian Tyres’ net sales and operating profit. Rewards from the period will be paid partly in shares (to an approximate maximum total of 100,000 Nokian Tyres plc shares) and partly in cash, paid in 2015. The cash proportion is intended to cover taxes and tax-related costs arising from the rewards. An employee will not receive any award if his or her employment or service ends before reward payment.