The Board of Directors of Orion Corporation has decided on a new share-based incentive plan for the Group key persons. The aim of the Plan is to combine the objectives of the shareholders and the key persons in order to increase the value of the Company, to commit the key persons to the Company, and to offer them a competitive reward plan based on holding the Company's shares.
The Plan includes earning periods. The Board of Directors decides annually on the beginning and duration of the earning periods in 2013, 2014 and 2015. The Board of Directors decides on the earnings criteria and on targets to be established for them at the beginning of each earning period. Two earning periods, calendar year 2013 and calendar years 2013-2015, commenced upon implementation of the Plan. The potential reward of the Plan, for the earning period 2013, is based on the Orion Group's operating profit and, for the earning period 2013-2015, on the total return on Orion Corporation class B share.
The potential reward will be paid partly as the Company's class B shares and partly in cash in 2014, on the basis of the earning period 2013, and in 2016 on the basis of the earning period 2013-2015. The proportion to be paid in cash will be used for taxes and tax-related costs arising from the reward to a key person. The value of reward to be paid on the basis of the Plan and the Orion Share-based incentive plan established in 2010 during one calendar year is a key person's gross annual salary multiplied by 1.75, in the maximum, at the date of the reward payment. Gross annual salary means total salary together with fringe benefits, excluding annual bonus and long-term incentive plan. The shares paid on the basis of the earning period 2013 cannot be transferred during the restriction period, which will end on 31 December 2015 with the exception that notwithstanding the transfer restrictions relating to the shares to be paid on the basis of the Plan, a person belonging to the Plan may purchase Orion Corporation A shares at will and at his/her expense on the stock exchange or otherwise and enter these shares under the transfer restriction of the Plan, and after the acquisition transfer a corresponding number of B shares under the transfer restriction.
The target group of the Plan consists of approximately 35 people. The total maximum amount of rewards to be paid on the basis of the Plan is 500,000 Orion Corporation class B shares and a cash payment corresponding to the value of the shares.
|Timo Lappalainen |
President and CEO
|Olli Huotari |
SVP, Corporate Functions
Olli Huotari, SVP, Corporate Functions, tel. +358 10 426 3054, mobile +358 50 966 3054
Orionintie 1A, FI-02200 Espoo
Orion is a globally operating Finnish company developing pharmaceuticals and diagnostic tests - a builder of well-being. Orion develops, manufactures and markets human and veterinary pharmaceuticals, active pharmaceutical ingredients and diagnostic tests. The company is continuously developing new drugs and treatment methods. Pharmaceutical R&D focuses on central nervous system drugs, oncology and critical care drugs, and Easyhaler® pulmonary drugs.
Orion's net sales in 2012 amounted to EUR 980 million and the company had about 3,500 employees. Orion's A and B shares are listed on NASDAQ OMX Helsinki.