HKScan Corporation, Stock Exchange Release 3 April 2023 at 1.30 p.m. EET
The Board of Directors of HKScan Corporation has decided to establish a new long-term share-based incentive plan for the CEO. The aim is to align the objectives of the Company´s shareholders and the CEO for increasing the value of the Company in the long-term, to retain the CEO at the Company and to offer the CEO a competitive incentive scheme that is based on earning and accumulating shares.
Performance Share Plan 2023–2027
The Performance Share Plan 2023–2027 comprises one (1) five-year (5) performance period covering the calendar years 2023–2027.
In the plan, the CEO has the opportunity to earn HKScan Corporation series A shares based on the achievement of performance criteria. The potential rewards based on the plan will be paid in three instalments, by the end of May 2026, May 2027 and May 2028.
During the performance period 2023–2027, the rewards of the plan are based on the profitability and debt service capacity of HKScan Corporation.
The rewards to be paid based on the performance period 2023–2027 correspond to the value of approximately 1.9 million HKScan Corporation shares in maximum total, also including the portion to be paid in cash. The reward to be paid on the basis of the Performance Share Plan will be capped if the limits set by the Board for the payable reward from the performance period 2023—2027 are reached.
The reward of the Performance Share Plan is paid partly in HKScan shares and partly in cash. The cash proportion of the reward is intended for covering taxes and tax-related expenses arising from the rewards to the participant. In general, the reward payment is not binding if the CEO contract terminates during the performance period.
CEO is obliged to hold at least 50 per cent of the net shares paid to him under the plan until the value of his total shareholding in the company corresponds to the value of his annual salary. Such number of shares must be held as long as the position as CEO continues.
Board of Directors
Reijo Kiskola, Chairman of the Board, HKScan Corporation
Call requests to Reijo Kiskola: HKScan Media Service Desk, tel. +358 10 570 5700 or email: firstname.lastname@example.org