KESKO CORPORATION STOCK EXCHANGE RELEASE 04.04.2011 AT 17.00 1(1)
Kesko Corporation's Board of Directors has made a decision to introduce a new share-based compensation plan for some 150 Kesko management personnel and other named key personnel.
The purpose of the plan is to promote Kesko's business operations and to increase the company's value by combining the objectives of the shareholders and the management personnel. The plan encourages its participants to commit to the Kesko Group and provides them with the opportunity to receive company shares, if the targets set in the share-based compensation plan are achieved.
The share-based compensation plan includes three vesting periods, namely the calendar years 2011, 2012 and 2013. The compensation for each vesting period is based on the fulfilment of the vesting criteria determined by the Board separately for each vesting period. The criteria for the 2011 vesting period are Kesko's basic earnings per share (EPS) excluding non-recurring items, the 2011 performance of the Kesko Group's sales exclusive of tax, and the percentage by which the total shareholder return of a Kesko B share exceeds the OMX Helsinki Benchmark Cap index.
The compensation possibly paid for a vesting period is paid in Kesko B shares. The plan allows a total maximum of 600,000 B shares to be issued over the three-year period. In addition, a cash compensation is paid to cover the taxes and tax related charges payable on the compensation. The compensation payable for a vesting period is paid by the end of April in the calendar year following the vesting period.
A commitment period of three calendar years following each vesting period is attached to the shares issued in compensation, during which shares must not be transferred. Except for certain exceptions, if a person's employment or service relationship terminates prior to the end of the commitment period, he or she must return the shares subject to transfer restriction to Kesko without consideration.
Further information is available from Riitta Laitasalo, Senior Vice President, Human Resources, tel. +358 1053 22060.
Kesko Corporation
Harri Utoslahti
Communications Manager
DISTRIBUTION
NASDAQ OMX Helsinki
Main news media
www.kesko.fi
