Metsä Board Oyj - Other information disclosed according to the rules of the Exchange

METSÄ BOARD EXECUTIVES’ AND KEY EMPLOYEES’ INCENTIVE PLAN

Metsä Board Stock Exchange Release 10 January 2017 at 5 pm EET


The Board of Directors of Metsä Board has resolved to continue the share-based
incentive plan directed to corporate executives. The aim of the plan is to
combine the objectives of the shareholders and executives in order to increase
the value of Metsä Board, to commit the executives to perform the mutual
strategy and to offer them a competitive reward plan based on share ownership. 

The share plan 2017—2021 consists of three performance periods, namely calendar
years 2017—2019, 2018—2020 and 2019—2021. The Board of Directors will resolve
on the performance criteria and targeted performance levels for each criteria
at the beginning of each performance period. The potential reward for the
performance period 2017—2019 is based on the development of Metsä Board’s (50
%) and Metsä Group’s (50%) Return on Capital Employed (ROCE, %), as determined
by the Board of Directors. The Board of Directors is entitled to reduce the
rewards fully or partly if defined earnings or equity ratio criteria are not
met, or if the reward, together with any short term bonus payment,  would
exceed the participant’s annual salary, or in the case of the CEO his annual
salary multiplied by two. 

The performance period is followed by a two-year restriction period during
which the participant is not allowed to transfer or sell the shares. The
potential reward from the performance period 2017—2019 is paid in the spring of
2020 in Metsä Board Corporation’s B series shares. 

The target group of the plan for the performance period 2017—2019 consists of
20 participants, including the members of the Corporate Management Team as well
as key individuals in sales, production and corporate administration. The
rewards to be paid on the basis of the plan for the performance period
2017—2019 will amount to a maximum of 263,750 B shares. In addition, a cash
proportion is included in the reward to cover taxes and tax-related costs
arising from the reward. The estimated market value of the plan’s first
performance period amounts to 1.7 million euros. 


METSÄ BOARD CORPORATION



Further  information:
Kari Jordan, Chairman of the Board of Directors, tel. +358 10 465 4262




www.metsaboard.com

Metsä Board is a leading European producer of folding boxboards and white
linerboards made from fresh fibres. Its lightweight paperboards are developed
as the perfect fit for consumer goods, retail-ready and food service packaging.
The pure fresh fibres Metsä Board uses are a renewable resource, traceable to
origin in northern forests. 

The global sales network of Metsä Board supports customers worldwide, including
brand owners, converters and merchants. In 2015, the company’s sales totalled
EUR 2.0 billion, and it has approximately 2,600 employees. Metsä Board, part of
Metsä Group, is listed on the Nasdaq Helsinki.