The 2011 AGM agreed to introduce a long-term incentive programme (LTIP 2011) for Billerud and a related transfer of shareholdings.
The Board of Director's main objective with the proposal of LTIP 2011 is to strengthen Billerud’s capability to retain the best talent for key leadership positions. The aim is further to stimulate the managers and key employees whose efforts have direct impact on Billerud’s result, profitability and value growth, to increased efforts by aligning their interests and perspectives with those of the shareholders.
LTIP 2011 comprises a total of maximum 20 managers and other key employees within the Billerud Group, identified as essential to the future development of the Billerud Group. To participate, the participants must own Billerud shares referred to as “saving shares”. Following a three-year vesting period that begins on the date the agreement for LTIP 2011 takes effect and ends when Billerud releases its interim report for the first quarter of 2014, the participants will be allocated at no charge one right to matching shares and three rights to performance shares for each saving share. These rights entitle holders to Billerud shares provided certain criteria are met. For both types of rights, throughout the vesting period the participant must remain an employee of the Billerud Group and must not divest the saving shares. For the rights to performance shares, additional financial performance targets must be achieved. These targets are related to Billerud’s average operating margin for the period 2011–2013 in absolute terms and in comparison with a benchmark group consisting of specially designated companies, as well as Billerud’s total return for the period 2011–2013 in comparison with the total return for the same period for a benchmark group consisting of specially designated listed companies in the Nordic region.
The maximum number of Billerud shares which are included in the LTIP 2011 are 265,600, which correspond to approximately 0,3% of the number of outstanding Billerud shares and the number of outstanding votes.
For further information about the content of the programme, please refer to the press release dated 30 March 2011 and the document for the 2011 AGM, which is available below.
LTIP 2011