Raute - Company Announcement

A long-term share based incentive program 2014-2018 established for Raute's top management

Nastola, Finland, 2014-02-12 16:45 CET (GLOBE NEWSWIRE) -- RAUTE CORPORATION
STOCK EXCHANGE RELEASE February 12, 2014 at 5:45 p.m. 


A LONG-TERM SHARE BASED INCENTIVE PROGRAM 2014-2018 ESTABLISHED FOR RAUTE'S TOP
MANAGEMENT 

The Board of Directors of Raute Corporation has decided on the establishment of
a new long-term performance based share incentive program (Performance Share
Plan) for Raute Group's top management. The aim of the plan is to align the
objectives of the Company's owners and the management in order to i.a. develop
the company value and to commit the management to the Company through offering
them a competitive incentive system based on ownership of the Company's shares. 

The plan includes three individual share plans, each with the length of three
years. Each share plan consists of a one-year performance period, the payment
of the potential share reward in series A shares of the Company in the spring
following the performance period and a two-year restriction period following
the performance period during which the development of the value of the reward
is based on the development of the value of the Company's share. The
participant of the program may not sell or otherwise transfer the shares
received as a reward during the restriction period. The individual share plans
commence in 2014, 2015 and 2016. The commencement of the share plans 2015 and
2016 is, however, subject to a separate decision of the Company's Board of
Directors. 

The Board of Directors of the Company decides separately on the participants of
each commencing share plan and on the performance criteria applicable to the
performance period of each share plan, the target setting thereof and the
target and maximum levels of the payable reward. The first share plan includes
11 members of the Group's top management as participants, including the members
of the Executive Board. The performance criteria of the first share plan are
earnings per share (EPS) and revenue growth. 

According to a share ownership recommendation by the Company each participant
who is a member of the Executive Board is recommended to accumulate and, once
achieved, maintain a share ownership in the Company corresponding in value with
respect to the President and CEO annual, and with respect to the other
Executive Board members six months', fixed salary. Each participant subject to
the above share ownership recommendation shall use half of the post-tax net
shares received pursuant to the share based incentive program for fulfilling
the above share ownership recommendation. 

If a performance entitling to the maximum reward in the performance period 2014
of the first share plan is attained, the aggregate amount of share rewards to
be paid based on the first share plan is at most EUR 0.4 million which based on
the current share price corresponds to at most 60,000 series A shares of the
Company. The above mentioned share amount refers to the gross amount of shares
before the deduction of the applicable payroll tax from the share reward. The
actual amount of shares to be delivered to the participants of the program is
the net amount of the reward which remains after the withholding of the payroll
tax. 


RAUTE CORPORATION
Tapani Kiiski
President and CEO


FURTHER INFORMATION:
Mr. Erkki Pehu-Lehtonen, Chairman of the Board of Directors, tel. +358 400
468084 

DISTRIBUTION:
NASDAQ OMX Helsinki Ltd, main media, www.raute.com

RAUTE IN BRIEF:
Raute is a technology and service company that operates worldwide. Raute's
customers are companies operating in the wood products industry that
manufacture veneer, plywood and LVL (Laminated Veneer Lumber). The technology
offering covers machinery and equipment for the entire production process. As a
supplier of mill-scale projects Raute is a global market leader both in the
plywood and LVL industries. Additionally, Raute's full-service concept includes
technology services ranging from spare parts deliveries to regular maintenance
and equipment modernizations. Raute's head office is located in Nastola,
Finland. Its other production plants are in the Vancouver area of Canada, in
the Shanghai area of China, and in Kajaani, Finland. 

More information about the company can be found at www.raute.com.