On 2 March the Board of Directors for FLSmidth & Co. A/S allocated performance shares to the Executive Management and key staff (140 persons in total).
The maximum number of performance shares allocated is 177 790, of which 34 142 pertain to Executive Management. The vesting period is three years, and vesting will depend on fulfilment of stretched financial targets. The applicable financial targets are EBITA margin and net working capital ratio, calculated as three-year averages.
The cost of the programme is DKK 44 million in case of full vesting, based on the average closing share price from 12 – 18 February 2016.
Primarily, the purpose of the programme is to retain key staff and to align the interests of shareholders and participants by rewarding performance in accordance with the long-term strategy and financial targets.
So as to simplify and align the management structure, the officially registered Executive Management of FLSmidth will in future consist of the CEO and CFO only. In practice however, the Group Executive Management Team will remain unchanged and consist of the present eight Group Executive Vice Presidents, including the CEO and CFO.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/europe-cis/03032016/flsmidth-allocates-performance-shares-613/