KH Group Plc established performance matching share plan for key employees
KH Group Plc
Stock exchange release 31 may 2024 at 1:05 pm EEST
KH Group Plc established performance matching share plan for key employees
The Board of Directors of KH Group Plc resolved to establish a performance matching share plan for the key employees of KH Group Plc and KH-Koneet Group. The aim of the new plan is to align the objectives of the shareholders and the key employees in order to increase the value of the company in the long term. The plan is intended to encourage key employees to personally invest in the company’s shares, to steer them toward achieving the company’s strategic objectives, to retain them at the company, and to offer them a competitive incentive plan that is based on acquiring, earning and accumulating KH Group shares.
The performance matching share plan 2024–2028 includes three (3) performance periods, covering financial years 2024–2026, 2025–2027 and 2026–2028. The Board of Directors will resolve annually on the commencement and details of a performance period.
In the plan, it is possible to earn matching reward and performance-based matching reward. The matching reward is determined based on the fulfilment of the share ownership obligation and valid employment or director agreement. The performance-based matching reward is in addition determined by the achievement of targets set for the performance period. The potential rewards from the plan will be paid after the end of each performance period.
The performance criteria for the key employees of KH Koneet Oy for the performance period 2024-2026 are KH Koneet Group’s EBIT Profit (weight 70%) for the year 2026 and KH Koneet Group’s Return on Invested Capital (ROIC) (weight 30%) for the year 2026. The performance criterion for the key employees of KH Group Plc is based on KH Group’s Total Shareholder Return (TSR) until the end of 2026. The achievement of the targets set for the performance criteria will determine the final proportion out of the maximum reward that will be paid as performance-based reward to participants. The prerequisite for participation in the plan and receiving reward on the basis of the plan is that a participant personally has acquired KH Group shares up to the number determined by the Board of Directors. Furthermore, payment of reward is based on the participant´s valid employment or service upon reward payment.
The target group of the plan consists of of approximately 20 persons, including the CEO and other members of the KH Group Management and KH-Koneet Group Management. The rewards to be paid on the basis of the plan correspond to the value of an approximate maximum total of 2,046,000 KH Group shares, including also the proportion to be paid in cash. The final number of shares will depend on the participants’ personal share acquisitions and the achievement of the targets set for the performance criteria.
The rewards will be paid partly in the company’s shares and partly in cash by the end of May 2027. The cash proportion is intended to cover taxes and social security contributions arising from the reward to the participant. In general, no reward will be paid, if a participant´s employment or service terminates before the reward payment.
The members of KH Group and KH-Koneet Group Management are obliged to hold 50 per cent of the net reward shares received from the performance matching share plan, until the total value of the Management member’s shareholding in KH Group equals to 50 per cent of their annual base salary of the preceding year. Respectively, the CEO is obliged to hold 50 per cent of the net reward shares received from the performance matching share plan, until CEO´s shareholding in KH Group equals to 100 per cent of the CEO´s annual base salary of the preceding year. Such number of KH Group shares must be held as long as the membership in the Management or the position as the CEO continues.
KH GROUP PLC
FURTHER INFORMATION:
Chairman of the Board Juha Karttunen, tel. +358 40 555 4727
DISTRIBUTION:
Nasdaq Helsinki Ltd
Major media
www.khgroup.com
KH Group Plc is a conglomerate with four business areas: KH-Koneet, Indoor Group, Nordic Rescue Group and HTJ. All of our business areas are leading players in their sectors in B2B products and services and consumer trade. Our objective is to focus on the business of the earth-moving machinery supplier KH-Koneet. Other business areas will be further developed and then divested in line with the Group’s investment strategy. KH Group’s share is listed on Nasdaq Helsinki.
