The board of directors of FLSmidth & Co. A/S has allocated performance shares to members of the executive management and key staff (a total of 165 people). This is part of the group’s long-term incentive programme.
The maximum number of performance shares allocated is 164 612, of which 36 612 pertain to members of the executive management. The vesting period is three years and vesting is subject to the fulfilment of stretched financial targets. Calculated at three year averages, the applicable financial targets are EBITDA margin and net working capital ratio. Furthermore, approximately 8500 performance shares have been allocated for grants during the year. The cost for this purpose is DKK2.6 million.
The cost of the programme is DKK53 million, assuming full vesting. This is based on the average closing share price during the period from 1 February 2019 to 7 February 2019 (the first five trading days after the release of the annual report).
The primary purpose of this programme is to retain key staff and to align to the interests of shareholders and the incentive programme participants by rewarding performance in accordance with the company’s strategy and its long-term financial targets.
Read the article online at: https://www.worldcement.com/europe-cis/04032019/flsmidth-announces-long-term-incentive-programme/