Konecranes CEO targeted by incentive scheme18 December 2006
The 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 will be sold to the CEO in December 2006 and 50,000 shares in January/February 2007 on terms and conditions defined in the terms of subscription.
The shares sold are subject to a five-year transfer restriction. As part of the scheme the company will pay a separate bonus to the managing director to cover the taxes levied as a result of the arrangement.
The purpose of the incentive scheme is to motivate the managing director to contribute in the best possible manner to the long-term success of the company and increased shareholder value for all shareholders of the company.
The purpose of the incentive scheme is to motivate the managing director to contribute in the best possible manner to the long-term success of the company
“Through the incentive scheme Lundmark will invest a substantial amount of his own funds in the company’s shares for five years, which shows long-term commitment by the CEO," said Stig Gustavson, chairman of the board.
The company’s share price has increased from 7.50 Euros to its current level of around 20 Euros during Lundmark’s period as the CEO of the company. This development has been used as grounds for determining the share price. The agreed price of 12 Euros corresponds approximately to the average share price calculated from the beginning of year 2005, Gustavson explained.
The board of directors of the company is also considering to present to the annual general meeting of shareholders - to be held in the spring 2007 - the approval of another incentive programme that would be directed to a wider group of key personnel.
After the issuance of shares the company will hold 742,600 shares in the company. The board of directors will consider possibilities to use these shares in accordance with the authorisation granted by the general meeting of shareholders.