Raute - Other information disclosed according to the rules of the Exchange

A new performance and share value based long-term incentive program established for Raute's top management

Lahti, Finland, 2017-02-15 10:00 CET (GLOBE NEWSWIRE) -- RAUTE CORPORATION
STOCK EXCHANGE RELEASE 15 FEBRUARY 2017 at 11:00 a.m. 


A NEW PERFORMANCE AND SHARE VALUE BASED LONG-TERM INCENTIVE PROGRAM ESTABLISHED
FOR RAUTE’S TOP MANAGEMENT 

The Board of Directors of Raute Corporation has decided on the establishment of
a new performance and share value based long-term incentive program for Raute
Group’s top management. The aim of the plan is to align the objectives of the
company's management with the shareholders in developing the company value and
to commit the management to achieving the strategic targets of the company
through offering them a competitive long-term incentive scheme. 

The program consists of annually commencing individual three-year plans. The
individual plan may either comprise a three-year performance period or a
one-year performance period followed by a two-year restriction period. The
potential reward attained under the individual plan will be paid after the
three-year plan period. The potential reward will either be paid in listed
series A shares of Raute or in cash. 

The commencement of each individual plan, the length of the performance period
within the plan, the performance criteria, the eligible participants thereof
and the earning opportunity is subject to a separate decision of the company’s
Board of Directors in each case. 

The first plan commences from the beginning of the year 2017. It comprises a
one-year performance period, followed by a two-year restriction period. The
potential rewards thereunder will be paid in the spring 2020 provided that the
performance targets set by the Board of Directors are achieved. 

Eligible to participate in the first plan are 12 persons belonging to the
Group’s top management, including the members of Raute Group’s Executive Board.
The performance criteria applied to the plan which commences from the beginning
of the year 2017 are earnings per share (EPS) and net sales growth. 

The earning opportunity within the program is capped. The value of the reward
paid to the participant based on an individual three-year plan may not amount
to more than twice the value which the maximum earning opportunity allocated to
him/her had at the time the individual plan was launched. 

If the performance targets set for the plan commencing from the beginning of
the year 2017 are fully achieved, the aggregate amount of rewards to be paid
under this individual plan, estimated based on the average share price of the
last trading day preceding the date hereof, is approximately EUR 0.5 million
(gross before the withholding of the applicable payroll tax). 

According to a share ownership recommendation applied by the company each
participant of the program is expected to accumulate and, once achieved,
maintain a share ownership in the company corresponding to the value which is
twice the value of the maximum gross earning opportunity allocated to him/her
within the latest ongoing plan. Each participant is expected to use fifty per
cent of the net reward received under the program for accumulating his/her
share ownership until the above recommendation is fulfilled. The accumulation
of the share ownership is carried out either by keeping share rewards received
or by acquiring shares with the cash reward received under the program. 


RAUTE CORPORATION
Tapani Kiiski
President and CEO


FURTHER INFORMATION:
Mr. Erkki Pehu-Lehtonen, Chairman of the Board of Directors, mobile +358 400
468 084 

DISTRIBUTION:
Nasdaq 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 customer’s 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 the Nastola area of Lahti, Finland. Its other production plants are
in Kajaani, Finland, the Vancouver area of Canada and in the Shanghai area of
China. Raute’s net sales in 2016 were EUR 113.1 million. The Group’s headcount
at the end of 2015 was 643. 

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