New share-based long-term incentive scheme for the key personnel of Tokmanni Group Corporation
Tokmanni Group Corporation Stock exchange release 13 December 2023 at 2:15 pm
The Board of Directors of Tokmanni Group Corporation has decided on the establishment of a new share-based long-term incentive scheme for the Company’s key management and selected key employees. The incentive scheme comprises a Performance Share Plan (“PSP”). The Board of Directors, in addition, decided on the establishment of a new Restricted Share Plan structure (“Restricted Share Plan” or “RSP”) which is intended to be used as a complementary share-based retention plan.
Share-based long-term incentive plans are part of the reward program of the Company’s key personnel. The aim of the incentive scheme is to combine the objectives of the shareholders and the key employees in order to increase the value of the Company in the long-term, to commit the key employees to implement the Company’s strategy, and to offer them a competitive reward program based on earning and accumulating the Company’s shares.
Performance Share Plan
The Performance Share Plan structure consists of annually commencing individual Performance Share Plans, each with a three-year performance period, followed by the payment of the potential share rewards.
The Board of Directors of the Company shall decide on each new plan, its earning period and other related details separately.
The first individual plan within the new PSP structure, PSP 2024-2026, commences as of the beginning of 2024 and the rewards potentially earned thereunder will be paid in listed shares of Tokmanni Group during the first half of 2027. The payment of the rewards is conditional on the achievement of the performance targets set by the Board of Directors for the plan.
The performance measures based on which the potential share rewards under PSP 2024-2026 will be paid relates to the Company’s share value, the Company’s profitability and sustainability.
Eligible for participation in PSP 2024-2026 are approximately 80 individuals, including members of Tokmanni Group's Executive Group and other selected key employees.
If all the performance targets set for PSP 2024-2026 are fully achieved, the aggregate maximum number of shares to be paid based on this plan is approximately 200,000 shares (referring to gross reward, from which the applicable payroll tax is withheld before share delivery).
Restricted Share Plan
The Restricted Share Plan structure consists of annually commencing individual restricted share plans. Each plan comprises a restriction period with an overall length of three years, extending to the first half of the fourth year of the plan. The granted share rewards are paid to the selected participants in one or several tranches latest by the end of the restriction period. The share rewards are paid in listed shares of Tokmanni Group.
The Board of Directors of the Company shall decide on each new plan, its earning period and other related details separately.
The first individual plan, RSP 2024-2026, commences effective as of the beginning of 2024 and the share rewards payable thereunder are paid in annual tranches during the restriction period.
The aggregate maximum number of shares payable as a reward based on RSP 2024-2026 is approximately 50,000 shares (referring to gross reward, from which the applicable payroll tax is withheld before share delivery).
Other terms
The value of the rewards payable based on the above-described plans is limited by a maximum cap linked to the Company’s share price development.
Tokmanni Group applies a share ownership policy to the members of its Executive Group. According to this policy each member of the Executive Group is expected to retain in his/her ownership at least half of the shares received under the share-based incentive plans of the Company until the value of his/her share ownership in the Company corresponds to at least his/her annual gross base salary.
Tokmanni Group Corporation
Board of Directors
For further information, please contact
Tapio Arimo, CFO, tel. +358 20 728 7390, tapio.arimo(at)tokmanni.fi
Maarit Mikkonen, Head of IR and Communications, tel. +358 40 562 2282, maarit.mikkonen(at)tokmanni.fi
Tokmanni Group in brief
Tokmanni Group is one of the leading variety discount retailers in the Nordics. Around 5,400 Tokmanni employees in Finland, Sweden and Denmark make customers’ everyday life and special occasions easier by offering a versatile and up-to-date assortment of Finnish and international brand-name products and other high-quality products at prices that are always affordable. With more than 370 Tokmanni, Dollarstore, Big Dollar, Miny, Click Shoes and Shoe House stores and online stores, Tokmanni is always close to its customers. In 2022, Tokmanni’s revenue was EUR 1,168 million and comparable EBIT amounted to EUR 86 million. Tokmanni Group's shares are listed on Nasdaq Helsinki.
Distribution
Nasdaq Helsinki
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