Incentive Schemes

On 12 December 2011, Glaston’s Board of Directors decided on a share-based incentive scheme for the Group’s key personnel. 

The aim of the new plan is to combine the objectives of the shareholders and the key personnel in order to increase the value of the company, to commit the key personnel to the company, and to offer them a competitive reward plan based on long-term shareholding in the company. 

The new Plan includes three performance periods, calendar years 2012, 2013 and 2014. Glaston’s Board of Directors will decide on the Plan’s performance criteria and on targets to be established for the performance criteria at the beginning of each performance period. The potential reward from the Plan for the performance period 2012 will be based on the Glaston Group´s Operating Profit and net result, and it will be paid partly in the Company’s shares and partly in cash in 2013. The aim is that the proportion to be paid in cash will cover taxes and tax-related costs arising from the reward to a key person. No reward will be paid, if a key person’s employment or service ends before the reward payment. The maximum amount of rewards to be paid to a key person has been limited.

The shares paid on the basis of performance periods may not be transferred during the restriction periods, which will end approximately two years from the reward payment. Should a key person’s employment or service end during the restriction period, he or she must gratuitously return the shares given as reward to the Company.The members of the Executive Management Group must hold a half of the shares received on the basis of the new Plan until the value of his or her shareholding in total corresponds to the value of his or her gross annual salary. Such number of shares must be held as long as his or her employment or service in a Group company continues.

The target group of the Plan consists of approximately 25 people. The rewards to be paid on the basis of the Plan covering three years correspond to the maximum total of 4.8 million Glaston Corporation shares.

On 9 June 2010, Glaston’s Board of Directors decided on a performance share plan. The plan had one performance period covering 2010 and 2011, with the vesting condition being the development of the Group’s operating result. The plan did not vest, as the vesting condition was not fulfilled.

The Preident& CEO of Glaston has a separate share-based payment incentive scheme, accordingto which 50,000 Glaston Corporation shares weretransferred to him one year after the beginning of his employment relationship on September 3rd, 2010. When the shares were transferred, the CEO will also received cash to cover the income taxes and related payments arising from the shares. The shares cannot be transferred further within two years from the reward payment date (restriction period).