Suominen Oyj - Company Announcement

The Board of Directors of Suominen Corporation Resolved on a New Earnings Period in the Share Based Incentive Plan for Management and Key Employees

Helsinki, Finland, 2015-12-09 07:45 CET (GLOBE NEWSWIRE) -- Suominen
Corporation   Stock Exchange Release   9 December 2015 at 8:45am EET 

The Board of Directors of Suominen Corporation Resolved on a New Earnings
Period in the Share Based Incentive Plan for Management and Key Employees 

The Board of Directors of Suominen Corporation has approved a new earnings
period in the share based incentive plan (Performance Share Plan) for the Group
management and Group key employees. The new earnings period includes calendar
years 2016–2018. The aim of the Plan is to combine the objectives of the
shareholders and the persons participating in the plan in order to increase the
value of the Company in the long-term, to bind the participants to the Company,
and to offer them competitive reward plan based on earning and accumulating the
Company´s shares. The Plan is directed to approximately 15 people. 

The potential reward of the Plan from the performance period 2016–2018 will be
based on the Suominen Group´s Net Sales growth, Earnings before Interest and
Taxes margin (EBIT %) and Return on Invested Capital (ROI %). The rewards to be
paid on the basis of the performance period 2016–2018 correspond to the value
of an approximate maximum total of 1,225,000 Suominen Corporation shares
(including also the proportion to be paid in cash). 

The Board of Directors will be entitled to reduce the rewards agreed in the
Performance Share Plan if the limits set by the Board of Directors for the
share price are reached. 

The Board of Directors will decide separately on new earnings periods. The
Board of Directors will decide on the Plan’s performance criteria and required
performance levels for each criterion at the beginning of an earnings period. 

Reward Payment and Ownership Obligation for the Management

The potential rewards from the earnings periods 2016–2018 will be paid partly
in the Company’s shares and partly in cash in 2019. The cash proportion is
intended to cover taxes and tax-related costs arising from the reward to the
participant. As a rule, no reward will be paid, if a participant´s employment
or service ends before the reward payment. 

A member of the Corporate Executive Team must hold 50 per cent of the net
number of Shares given on the basis of the Plan, as long as his or her
shareholding in total corresponds to the value of half of his or her annual
gross salary. The President & CEO of the Company must hold 50 per cent of the
net number of Shares given on the basis of the Plan, as long as his or her
shareholding in total corresponds to the value of his or her annual gross
salary. Such number of Shares must be held as long as the participant’s
employment or service in a group company continues. 

Suominen Corporation
Board of Directors

For additional information, please contact:
Jorma Eloranta, Chair of the Board of Directors, tel. +358 (0)10 214 300
Nina Kopola, President & CEO, tel. +358 (0)10 214 300

Distribution:
Nasdaq Helsinki
Main media
www.suominen.fi


Suominen in brief

Suominen manufactures nonwovens as roll goods for wipes as well as for medical
and hygiene products. The end products made of Suominen’s nonwovens – wet
wipes, feminine care products and swabs, for instance - bring added value to
the daily life of consumers worldwide. Suominen is the global market leader in
nonwovens for wipes and employs approximately 600 people in Europe and in the
Americas. Suominen’s net sales in 2014 amounted to MEUR 401.8 and operating
profit excluding non-recurring items to MEUR 26.9 (continuing operations). The
Suominen share (SUY1V) is listed in NASDAQ OMX Helsinki Stock Exchange. Read
more at www.suominen.fi.