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 five earning periods, which are the calendar years 2019, 2019-2020, 2019-2021, 2020-2022 and 2021-2023. The Board of Directors decides on the earnings criteria and on targets to be established for them at the beginning of each earning period. The potential reward of the Plan for the earning periods commencing in 2019 is based on achieving the Orion Group's operating profit and net sales targets.
The potential reward will be paid partly as the Company's class B shares and partly in cash after the end of each earning period. The proportion to be paid in cash is aimed to cover taxes and tax-related costs arising from the reward to a key person. The Board of Directors may decide to decrease the rewards to be paid to a key person if the limits set for the Orion Group long-term incentive plan rewards for one calendar year are exceeded.
There is a two year restriction period for the one year earning period and a one year restriction period for the two year earning period. The shares paid on the basis of the Plan cannot be transferred during the restriction period 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. Restriction periods commence at the end of the earning period.There is no restriction period for the three year earning periods..
The target group of the Plan consists of approximately 50 people. The total maximum amount of rewards to be paid on the basis of the Plan is 700 000 Orion Corporation class B shares and a cash payment corresponding to the value of the shares. The total maximum amount includes a separate, so called reward for commitment part that the Board of Directors can use by a separate decision during the years 2019-2023. The maximum amount of the reward for commitment is no more than 100 000 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 pharmaceutical company - a builder of well-being. Orion develops, manufactures and markets human and veterinary pharmaceuticals and active pharmaceutical ingredients. 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 diseases for which Orion develops inhaled Easyhaler® pulmonary drugs. Orion's net sales in 2018 amounted to EUR 977 million and the company had about 3,200 employees at the end of the year. Orion's A and B shares are listed on Nasdaq Helsinki.