Konecranes CEO responds to board's scheme20 December 2006
An incentive scheme will be implemented by disposing of the company’s own shares held by the company on the basis of the authorisation granted to the board of directors by the general meeting of shareholders on March 8 2006.
Pursuant to the incentive scheme, a total of 50,000 shares in the company were sold to the CEO in December 2006 and 50,000 shares early in 2007 on terms and conditions defined in the terms of subscription.
Lundmark (pictured) responded: "This is the whole purpose of the arrangement. It shows that I believe in the company and the potential of the share. It has been discussed for some time so it was not a surprise."
This is the whole purpose of the arrangement. It shows that I believe in the company and the potential of the share. It has been discussed for some time so it was not a surprise
He added: "I think that shared ownership is good for any company since it aligns the management and owners' interests."
Many public companies have stock or option plans but, as Lundmark said, "what is somewhat less common is that a CEO commits so much of his personal funds into the scheme."
If Lundmark leaves the company he will have to sell the shares back at a lower level to that of the acquisition price and the market value. So, as he admitted, "I have no upside if I leave."