The Board of Directors of FLSmidth & Co has allocated performance shares to members of the Executive Management and key staff (168 people in total) as part of the group's ‘Long-term Incentive’ programme.
The maximum number of performance shares allocated is 205 016, of which 36 406 pertain to members of the Executive Management. The vesting period is three years, and vesting is subject to fulfilment of stretched financial targets. The applicable financial targets are EBITA margin and net working capital ratio, calculated at three-year averages. Furthermore, approximately 9 800 performance shares have been allocated for grants during the year. The cost for this purpose is DKK 2.5 million.
The cost of the programme is DKK 52.5 million assuming full vesting, based on the average closing share price during the period from 12 – 18 February 2020 (the first five trading days after the release of the Annual Report).
The primary purpose of the programme is to retain key staff and to align 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/24022020/flsmidths-board-of-directors-allocate-performance-shares-to-members-of-executive-management/