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The Board of Directors of Kempower decided on a long-term incentive plan for the Group’s key employees
The Board of Directors of Kempower (Kempower Corporation) has decided to establish a new share-based incentive plan for the group’s key employees. The aim is to align the objectives of the shareholders and key employees for increasing the value of the company in the long-term, to commit the key employees to work for the company and to offer them a competitive incentive scheme that is based on earning and accumulating shares.
Kempower Corporation, Company Announcement 01 March 2022 at 10:00 EET
The Board of Directors of Kempower (Kempower Corporation) has decided to establish a new share-based incentive plan for the group’s key employees. The aim is to align the objectives of the shareholders and key employees for increasing the value of the company in the long-term, to commit the key employees to work for the company and to offer them a competitive incentive scheme that is based on earning and accumulating shares.
The Performance Share Plan 2022–2024 consists of a three (3) year performance period, covering the financial years of 2022–2024. The Board intends to decide annually on new performance periods.
In the plan, the target group is given an opportunity to earn Kempower’s shares based on performance. The potential rewards based on the plan will be paid after the end of the performance period. The reward will be paid partly in Kempower’s shares and partly in cash. The cash proportion of the reward is intended for covering taxes and statutory social security contributions arising from the rewards to the participants. In general, no reward is paid if the participant’s employment or director contract terminates before the reward payment. During the performance period, the rewards are based on the Total Shareholder Return of the Kempower share in 2022-2024 and Group Revenue in 2024. The value of the maximum rewards to be paid on the targeted level will correspond to a total of approximately 130,000 Kempower’s shares including also the cash proportion. However, if the targeted performance criteria will be significantly exceeded the ultimate maximum of the rewards to be paid will correspond to a total of approximately 165,000 Kempower’s shares. The estimated maximum expense of share-based incentive plan for the performance period 2022–2024, based on Kempower’s current share value, is EUR 1.6 million in total.
It is the intention of the Board of Directors that no new shares will be issued in connection with the PSP 2022-2024 Program and therefore, the PSP 2022-2024 program would have no dilutive effect on the number of the Kempower’s registered shares.
Approximately 20 persons, including the CEO and other Kempower Extended Management Team members, belong to the target group of the performance period.
The Extended Management Team member is obliged to hold at least 50 per cent of the shares received as a net reward from the performance share plan, until the total value of the member’s shareholding in Kempower equals to 50 per cent of their annual base salary of the preceding year. Such number of Kempower’s shares must be held as long as the membership in the Extended Management Team continues.
Kempower Corporation
The Board of Directors
Further enquiries:
Jukka Kainulainen, CFO, Kempower
jukka.kainulainen@kempower.com
Tel. +358 29 0021900
Kempower, media relations:
Paula Savonen, Director, Communications, Kempower
paula.savonen@kempower.com
Tel. +358 29 0021900
Certified Adviser
Alexander Corporate Finance Oy
Tel. +358 50 520 4098
About Kempower:
Kempower designs and manufactures DC fast charging solutions for electric vehicles and machines. We’re a team of electric vehicle enthusiasts with a deep understanding of the charging market and a hands-on mentality. Our product development and production are rooted in Finland, with a majority of our materials and components sourced locally. We focus on all areas of transportation, from personal cars and commercial vehicles to mining equipment, boats and motorsports. With Kemppi Group’s 70 years’ experience in perfecting DC power supplies, we set the bar high in engineering and user-experience design. Kempower is listed in the Nasdaq First North Growth Market Finland. www.kempower.com