The Board of Directors of Cargotec Corporation has resolved to establish a new share-based incentive programme directed to the key employees of Cargotec. The aim of the programme 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 Cargotec’s strategy, and to offer them a competitive reward plan based on earning the Company’s shares.
The performance share programme includes calendar years 2023–2025 as a performance period. The performance period includes three measuring periods of one calendar year. For each measuring period, the Board of Directors will annually resolve the performance criteria and the required performance levels for each criterion. The 2023-2025 performance share programme is directed to approximately 100 key employees, including the members of Cargotec Leadership Team.
The Board of Directors has resolved that for the key employees of the business areas Kalmar and Hiab, the potential reward of the programme from the measuring period 2023 will be based on the business areas’ earning per share (EPS). For the Cargotec Corporate key employees, the performance criteria is Cargotec’s earning per share (EPS). The rewards to be paid on the basis of the performance period 2023–2025 will amount up to an approximate maximum total of 200,000 Cargotec’s class B shares. In addition, the rewards include cash proportions that are intended to cover taxes and tax-related costs arising from the reward to the key employees.
After the end of the performance period, the Board of Directors will confirm the cumulative amount of rewards earned from the measuring periods, and potential rewards from the performance period 2023–2025 will be paid partly in Cargotec’s class B shares and partly in cash in 2026. As a rule, no reward will be paid, if a key employee’s employment or service ends before the reward payment.
In addition, The Board of Directors of Cargotec Corporation has resolved to establish a new restricted shares programme for calendar years 2023–2025. As a part of total compensation, additional restricted share grants can be allocated for selected key employees.The rewards to be paid on the basis of the programme will amount up to an approximate maximum total of 24,000 Cargotec’s class B shares. In addition, the rewards include cash proportions that are intended to cover taxes and tax-related costs arising from the reward to the key employees.
The Board of Directors