The Board of Konecranes Plc has resolved to establish a new Performance Share Plan 2020 (the “Plan”) for Konecranes key employees. The Plan has a performance period from 2020 to 2022 with three separate measurement periods and separate targets for 2020, 2021, and 2022.
The criterion for the measurement period of 2020 is adjusted earnings per share (EPS). Adjustments to the EPS include defined restructuring costs, mergers and acquisitions related deal costs and other unusual items. The EPS target for the first measurement period has also been resolved by the Board of Directors.
The target group of the Plan for the performance period 2020—2022 consists of a maximum of 170 key employees of the Konecranes group. The rewards to be paid on the basis of the performance period 2020—2022 correspond to the value of a maximum total of 600,000 Konecranes Plc shares. The payment of the total reward takes place in 2023 if the plan term conditions are met.
The potential rewards from the Plan will be paid partly in Konecranes Plc shares and partly in cash after the performance periods. The cash proportion is intended to cover taxes and tax-related costs arising from the rewards to the plan participants. As a rule, no reward will be paid if plan participant’s employment or service ends before the reward payment.
The Annual General Meeting of Shareholders held on June 11, 2020 authorized the Board of Directors to decide on the issue of shares or the transfer of treasury shares needed for the implementation of the Plan.