Munksjö Oyj - Company Announcement

Munksjö to establish a new long-term share value based incentive programme for senior executives and other key personnel

Helsinki, Finland, 2016-06-15 15:20 CEST (GLOBE NEWSWIRE) -- 
MUNKSJÖ OYJ, STOCK EXCHANGE RELEASE 15 June 2016 at 3.20 p.m. CEST

Munksjö to establish a new long-term share value based incentive programme for
senior executives and other key personnel 

The Board of Directors of Munksjö Oyj has approved a new long-term, share
value-based incentive programme for Munksjö’s senior executives and other key
personnel. The objective of the programme is, by creating a long-term share
value based incentive for the management, to increase the company value in the
long term and to secure the alignment of the objectives of the company’s
management with the objectives of its shareholders. 

The  potential rewards from the 2016-2018 programme will be paid in the spring
2019, if the performance targets set by the Board of Directors are achieved. 

The performance measure applied to the programme is the total shareholder
return (TSR) of Munksjö’s share in the three-year performance period. In
addition to the fulfilment of the targets set for the above performance
criterion, the payment of the reward is conditional on the achievement of a
minimum EBITDA requirement set by the Board of Directors. 

The potential rewards under the programme will be paid either in cash or in
Munksjö shares as decided by the Board of Directors. 

If the performance target set for the programme is achieved in full, the
maximum value of rewards payable based on the programme corresponds to the
value of approximately 580,000 shares (gross before the deduction of the
applicable taxes). 

The programme includes a cap maximising the gross reward payable based on the
three-year programme to an amount corresponding to 200 per cent of the
individual participant’s annual base salary. The company, in addition to this
cap applied to long-term incentive rewards, applies a combined cap to all
variable pay paid in the company any given year. According to this cap, the
aggregate value of all short-term and long-term incentive rewards paid in the
company any given year (with the exception of possible project bonuses) may not
exceed a specific percentage of the company’s EBITDA, as determined by the
Board of Directors. 

Munksjö applies a share ownership policy for the members of Munksjö Management
Team. In accordance with this policy the Management Team members should
accumulate a share ownership in the company which corresponds to at least the
individual Management Team member’s annual base salary. To support the
achievement of this share ownership level, at least fifty per cent of the LTI
share rewards (net after the deduction of applicable payroll tax) received by
these individuals under the programme shall be retained. In case of a LTI cash
reward, at least fifty percent of the net cash received as a reward should be
used to acquiring shares from the market. These two alternatives are valid
until the share ownership of the individual Management Team member in Munksjö
amounts to at least his/her annual base salary. 

Board of Directors

Munksjö Oyj


For more information, please contact:

Anna Selberg, SVP Communications, tel. +46 70 323 10 32
Laura Lindholm, Head of Investor Relations, tel. +46 72 703 63 36



Munksjö - Intelligent paper technology

Munksjö is a world-leading manufacturer of advanced paper products developed
with intelligent paper technology. Munksjö offers customer-specific innovative
design and functionality in areas ranging from flooring, kitchens and
furnishings to release papers, consumer-friendly packaging and energy
transmission. The transition to a sustainable society is a natural driving
force for Munksjö's growth as the products can replace non-renewable materials.
This is what "Made by Munksjö" stands for. Given Munksjö's global presence and
way of integrating with the customers, the company forms a worldwide service
organisation with approximately 2,900 employees and 15 facilities located in
France, Sweden, Germany, Italy, Spain, Brazil and China. Munksjö's share is
listed on Nasdaq in Helsinki and Stockholm. Read more at www.munksjo.com.