In order to improve Cargotec's financial performance, the Finnish company has decided to re-define the company's compensation and incentive structure.
The Board of Directors has approved a new share-based incentive program for key personnel. According to Cargotec, the purpose of the program is to encourage staff “to increase long-term shareholder value” and ensure leading executives are committed to achieving the company's financial targets.
The program is based on the H2/2013 financial performance and includes a holding period of approximately two years following the performance period. The potential reward will be delivered in Cargotec class B shares. The shares will be delivered in spring 2014 and will be released in two tranches during year 2015.
“If the targets are fully met, the cost of the programme is approximately €6 million. The number of the participants is 42 persons, including Cargotec's President and CEO and members of the Executive Board,” the company said in a statement.
No new shares will be issued in connection with the above programme and therefore the programme will have no diluting effect.