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2011-05-27 07:00:00 CEST 2011-05-27 07:00:47 CEST SÄÄNNELTY TIETO Pohjola Pankki Oyj - Company AnnouncementOP-Pohjola Group to Adopt Group-level Targets for Long-term Incentive Schemes and Shared by All Personnel GroupsOP-Pohjola Group Central Cooperative COMPANY RELEASE Release category: Company Announcement 27 May 2011, 8.00 am OP-Pohjola Group to Adopt Group-level Targets for Long-term Incentive Schemes and Shared by All Personnel Groups OP-Pohjola Group Central Cooperative's Supervisory Board has decided that OP- Pohjola Group will adopt Group-level targets for its long-term incentive schemes. These targets conform to those covering a new, share-based management incentive scheme and OP Personnel Fund. The standardised, Group-level long-term performance indicators applying to all personnel will help OP-Pohjola Group implement its strategy. Cross-selling as a key target performance indicator OP-Pohjola Group Central Cooperative's Supervisory Board has set progress in cross-selling among private customers and growth in corporate customer business as new long-term target performance indicators. In addition, the incentive schemes take account of Group profitability and capital adequacy. No bonuses will be paid out if the Group's capital adequacy is lower than the set minimum level on the bonus payout date. - The shared targets and indicators will lead to more intense cooperation within the entire Group, which will foster our strategically important integration. Bonus payouts require that the Group and its business segments achieve their challenging targets. Moreover, the schemes also take our financial group's profitability development and capital adequacy into consideration, says Paavo Haapakoski, Chairman of OP-Pohjola Group Central Cooperative's Supervisory Board. The short-term incentive schemes of Group member banks and other Group companies are still based on the achievement of company-specific targets. When creating the incentive schemes, OP-Pohjola Group took account of amended regulation governing remuneration policies and practices in the financial services industry. Payouts spread over several years in the share-based management incentive scheme OP-Pohjola Group's new long-term management and key-employee incentive scheme will replace the previous scheme and is aimed at not only motivating and guiding those covered by the scheme but also engaging them in the achievement of strategic targets. The new management incentive scheme has a three-year vesting period, the first one of which is 2011-13. The scheme covers roughly 400 people within OP-Pohjola Group. Those covered by the scheme will be entitled to receiving a certain number of Pohjola Bank plc Series A shares, if OP-Pohjola Group attains its strategy-based targets set for the vesting period. OP-Pohjola Group Central Cooperative's Supervisory Board has decided on the maximum bonus for each key employee. The bonus based on the scheme will be paid out to the employee in terms of shares and cash and in three equal numbers/instalments in 2015, 2016 and 2017 after the vesting period, provided that the Group's capital adequacy is higher than the minimum requirements on the payout date. Conditions related to employment or executive contracts have been attached to the bonus payout. The bonus is determined by the person' position. If the set targets are annually achieved at 100 per cent, the management and key employees will be entitled to a bonus equalling their regular 2-12-month salary subject to PAYE tax. Members of OP-Pohjola Group Central Cooperative's Executive Board and Pohjola Group's Executive Committee as well as separately specified executives are bound by ownership obligations related to the scheme. According to the rules governing the scheme, during their employment with the company they must retain at least half of the shares received on the basis of the scheme until such shareholding equals one person's 12-month fixed gross earnings. Bonuses paid out under the scheme will be in the form of Pohjola Bank plc Series A shares. On the basis of the scheme, the number of Series A shares that may be given for the three-year vesting period totals around 2.7 million, provided that the targets are achieved at 100 per cent. Pohjola's portion of the bonus accounts for about 0.6 million Series A shares. In addition, bonuses paid in cash will be used to cover taxes and tax-like charges arising from the bonuses. Pohjola shares available from the stock market will be used as shares distributed under the scheme, i.e. the scheme will have no dilution effect. OP-Pohjola Group Central Cooperative Carina Geber-Teir Chief Communications Officer DISTRIBUTION NASDAQ OMX Helsinki London Stock Exchange Major media op.fi, pohjola.fi FOR FURTHER INFORMATION, PLEASE CONTACT: Paavo Haapakoski, Chairman of the Supervisory Board of OP-Pohjola Group Central Cooperative For contact requests, please call Nora Hallberg, Vice President, Financial Communications, OP-Pohjola Group Central Cooperative, tel. +358 10 252 8203 [HUG#1519306] |
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