Sponda - Company Announcement

The Board of Directors of Sponda Plc resolved on key employees’ incentive scheme

Sponda Plc           Stock Exchange Release        5 February 2015 08:35 a.m.



The Board of Directors of Sponda Plc resolved on key employees' incentive scheme

The Board of Directors of Sponda Plc has resolved on a new share-based
incentive scheme for the Group's key employees. The terms of the scheme are the
same as in previous incentive schemes. The purpose of the scheme is to combine
the objectives of the shareholders and key employees in order to increase the
value of the Company, to commit key employees to the Company, and to offer them
a competitive remuneration scheme based on shareholding in the Company. 

The scheme consists of three three-year earning periods, calendar years
2015—2017, 2016—2018 and 2017—2019. The Board of Directors shall decide on
earning criteria and on targets to be established for the earning criteria for
each earning period. The earning criteria for the earning period 1 January 2015
— 31 December 2017 are the Group´s average Return on Capital Employed (ROCE, %)
during financial years 2015—2017 and the Group's cumulative Operational Cash
Earnings per Share (CEPS) during financial years 2015—2017 and sales of
properties. In addition, the Board of Directors assesses the Group's success in
relation to the prevailing market conditions. 

The possible remuneration shall be paid partly in the Company's shares and
partly in cash. The proportion to be paid in cash is intended to cover taxes
and tax-related costs incurred from the remuneration to a key employee.
Possible remuneration for the earning period 2015-2017 shall be paid in spring
2018. 

The shares may not be disposed of during the three-year commitment period
following the earning period. The commitment period of the earning period
2015-2017 ends on 31 December 2020. A key employee's must hold one half of the
shares paid on the basis of the scheme after the end of the commitment period
until the value of his or her shareholding in the Company in total corresponds
to the value of his or her annual gross salary. Such number of shares must be
held as long as his or her employment or service in a Group company continues. 

The maximum value of remuneration to be paid on the basis of each earning
period is a key employee's annual gross salary, at a maximum. The annual gross
salary means total salary together with fringe benefits of the calendar year
preceding the remuneration payment, the annual remuneration scheme and
long-term incentive scheme excluded. 

During the earning period 2015—2017, members of the Group's Executive Board, a
total of six persons, are included in the scheme. The Board of Directors may
decide to include more key employees in the scheme. The remuneration to be paid
on the basis of the earning period 2015—2017 correspond to a maximum total of
400,000 Sponda Plc shares (including also the proportion to be paid in cash). 



Helsinki 5 February 2015



Sponda Plc
Kari Inkinen
President and CEO



Further Information: Kari Inkinen, President and CEO, Tel. No. +358 400 402 653





Distribution:
NASDAQ OMX Helsinki Ltd
Main Media
www.sponda.fi





Sponda Plc is a property investment company specializing in commercial
properties in the largest cities in Finland. Sponda's business concept is to
own, lease and develop retail and office properties and shopping centres into
environments that promote the business success of its clients. The fair value
of Sponda's investment properties is approximately EUR 3.1 billion and the
leasable area is around 1.2 million m².