ORION CORPORATION STOCK EXCHANGE RELEASE 2 FEB 2016 AT 14:45 PM EET
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 2016, 2017 and 2018. 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 2016 and calendar years 2016-2018,commenced upon implementation of the Plan. The potential reward of the Plan, for the earning period 2016, is based on the Orion Group's operating profit and, for the earning period 2016-2018, 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 2017, on the basis of the earning period 2016, and in 2019 on the basis of the earning period 2016-2018. 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 2013 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 2016 cannot be transferred during the restriction period, which will end on 31 December 2018 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 50 people, in the maximum. 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 Olli Huotari
President and CEO 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. The core therapy areas of Orion's pharmaceutical R&D are central nervous system (CNS) disorders, oncology and respiratory for which Orion develops inhaled Easyhaler® pulmonary drugs.
Orion's net sales in 2015 amounted to EUR 1,016 million and the Company had about 3,400 employees. Orion's A and B shares are listed on Nasdaq Helsinki.