Teleste establishes a new share-based long-term incentive program
TELESTE CORPORATION STOCK EXCHANGE RELEASE 11.2.2021 AT 09:00
TELESTE ESTABLISHES A NEW SHARE-BASED LONG-TERM INCENTIVE PROGRAM
The Board of Directors of Teleste Corporation has approved the establishment of a new share-based long-term incentive program to be offered to the key employees of Teleste.
The objective of program is to align the interests of the key employees with those of Teleste shareholders by creating a long-term equity interest for the key employees and, thus, to increase the company value in the long term as well as to drive performance culture, to retain key employees and to offer the key employees with competitive performance based compensation.
The program consists of one three year plan which has the following main elements: An investment in Teleste shares as a precondition for the key employee’s participation in the plan, a matching share plan with a three-year vesting period based on the individual investment and a performance share plan with a three-year performance period. The plans in the program are the matching share plan 2021-2023 and the performance share plan 2021-2023.
The share investment and the matching share plan 2021-2023
The matching share plan 2021-2023 comprises the individual key employee’s investment in Teleste’s shares and the delivery of a specific number of matching shares without consideration as a share reward based on the share investment after the three-year vesting period. The matching ratio applied is one matching share for each two shares invested.
If all the eligible key employees participate in the plan by fulfilling the investment precondition, the maximum aggregate amount of matching shares that may be delivered based on the matching share plan 2021-2023 is approximately 27,500 shares (gross before the deduction of the applicable payroll tax and the remaining net amount is delivered to the participants in Teleste shares).
The current aggregate maximum value of the matching share plan 2021-2023, estimated based on the average share price of the last trading day preceding the date hereof is approximately 144,000 euros.
The performance share plan 2021-2023
The performance share plan comprises a three-year performance period. The potential share rewards will be delivered if the performance targets set by the Board of Directors are attained. The performance measure applied is the total shareholder return (TSR) of Teleste share. A precondition for an individual key employee’s participation in the performance share plan is the afore-mentioned investment in Teleste shares.
If all the eligible key employees participate in the plan by fulfilling the investment precondition and if the performance targets set for this performance share plan are fully attained, the maximum number of shares that may be delivered based on the performance share plan 2021-2023 is approximately 330,000 shares (gross before the deduction of the applicable taxes).
The current aggregate maximum value of the performance share plan 2021-2023, estimated based on the average share price of the last trading day preceding the date hereof is approximately 1,729,000 euros.
The Board of Directors has approved maximum 33 key employees as eligible for participating in the new share-based long-term incentive program.
The Board of Directors anticipates that no new shares will be issued in connection with the above share-based long-term incentive program and, therefore, the plan will have no dilutive effect on the number of the Teleste’s registered shares.
Chairman of the Board of Directors
President and CEO
Timo Luukkainen, phone +358 405 143040
Jukka Rinnevaara, phone +358 2 2605 611
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