Harvia Plc, Stock Exchange Release, May 21, 2018 at 4 p.m. EET
The Board of Directors of Harvia Plc has decided on a new share based long-term incentive plan for the CEO and Management Team members
The Board of Directors of Harvia Plc has decided to establish a new share based long-term incentive plan for the CEO and Management Team members. The plan will form a part of Harvia Plc's remuneration program for its executives, and the aim of the Plan is to support the implementation of the company's strategy, to align the interests of the executives with interests of the shareholders' to increase the value of the company, to improve the performance of the company, and to retain the executives.
The long-term incentive plan consists of three performance periods of three calendar years each, 2018-2020, 2019-2021 and 2020-2022. The Board of Directors will decide separately for each performance period the plan participants, performance criteria and related targets, as well as the minimum, target, and maximum reward potentially payable based on target attainment.
The amount of the reward paid to the participants depends on achieving the pre-defined targets. No reward will be paid if targets are not met or if the participant's employment or service ends before reward payment. If the targets of the plan are reached, rewards will be paid to the participants during the next spring after the end of each performance period.
The long-term incentive plan will not have a dilutive effect, because the rewards will be paid with existing shares of the company, which will be purchased from the market, and no new shares will be issued in connection with this plan.
In the first performance period, the plan has 10 participants at most and the targets for the long-term incentive plan relate to the company's total shareholder return, revenue growth and EBIT margin. The maximum number of shares to be paid based on the first performance period is approximately 125 000 Harvia Plc's shares, which corresponds to approximately 715 000 euros calculated with the volume weighted average share price on the trading day preceding this release. This number of shares represents gross earning, from which the withholding tax and possible other applicable contributions are deducted and the remaining net amount is paid in shares. However, the company has the right to pay the reward fully in cash under certain circumstances. Potential rewards from the first performance period will be paid out during the spring 2021.
Board of Directors
Tapio Pajuharju, CEO
tel. +358 50 5774 200
Harvia in short
Harvia is one of the leading companies operating in the sauna and spa market globally, as measured by revenue.Harvia's brands and product offering are well-known in the marketand the company's comprehensive product offering strives to meet the needs of the international sauna and spa market, of both private and professional customers.
Harvia's revenue amounted to EUR 60.1 million in 2017, its operating profit was EUR 9.3 million and adjusted operating profit EUR 10.7 million during the same period. The Company employs some 365 professionals in Finland, China and Hong Kong, Romania, Austria, Germany and Estonia. Harvia's headquarters in Muurame, Finland is adjacent to company's largest sauna and sauna component manufacturing facility.