HKScan board approves share-based incentive plan

The Board of Directors of HKScan Corporation has approved a share based long-term incentive plan for the group's top management and selected key employees for the years 2017-2019.

The Board of Directors of HKScan Corporation has approved a share-based long-term incentive plan for the group´s top management and selected key employees for the years 2017-2019. The aim of the plan is to align the objectives of the company's management with the interests of the shareholders in developing the company value and to commit the management to achieving the strategic targets of the company through offering them a competitive long-term incentive scheme.

The new incentive plan comprises a one-year performance period, the year 2017, which is followed by a restriction period extending to the years 2018–2019.

If the performance targets set by the Board of Directors are achieved, the share rewards attained based on the plan will be paid in listed series A shares of HKScan Corporation in two tranches during the restriction period as follows: 50 per cent of the attained rewards are paid in the year 2018 and 50 per cent in the year 2019.

The potential rewards payable based on the plan will be based on HKScan Group´s return on capital employed (ROCE) and earnings per share (EPS) in the performance period.

Eligible to participate in the new share-based plan are 28 positions belonging to HKScan´s top management and other selected key employees. If the performance targets set for the plan are fully achieved, the aggregate maximum number of shares to be delivered based on the plan is 743 000 listed series A shares of HKScan Corporation (gross before the deduction of applicable taxes Based on the above, the aggregate value of the plan at its maximum, estimated based on the average share price on April 7, 2017, is approximately 2.5 million euros.

If the employment or service relationship of the key employee ends before the individual share tranche is paid, that respective share tranche will not be paid to the person concerned.

The Board of Directors anticipates that no new shares will be issued in connection with the share-based incentive plan, and that the plan will therefore have no dilutive effect on the registered number of the company’s shares.

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