KALMAR CORPORATION, STOCK EXCHANGE RELEASE, 12 FEBRUARY 2025 AT 3:15 PM (EET)
Kalmar's Board of Directors has decided on the establishment of new share-based long-term incentive plans
The Board of Directors of Kalmar Corporation has today decided on the establishment of new share-based long-term incentive plans for the company's management and selected key employees. The incentive plans are a Performance Share Plan (PSP) and a Restricted Share Plan (RSP). RSP is established as a complementary share-based long-term retention plan for individually selected key employees in specific situations.
The objectives of the share-based long-term incentive plans are to align the interests of Kalmar's management and key employees with those of the company's shareholders and, thus, to promote shareholder value creation in the long term, and to commit management and key employees to achieving Kalmar's strategic targets.
Performance Share Plan
The Performance Share Plan consists of annually commencing performance share plans, each with a three-year performance period, followed by the payment of the potential share rewards. The potential share rewards are paid in class B shares of Kalmar. The commencement of each new plan is decided separately by Kalmar's Board of Directors.
The first plan, PSP 2025 - 2027, commences effective as of the beginning of 2025 and the potential share rewards will be paid during the first half of 2028. The payment of the rewards is conditional on the achievement of the performance targets which the Board of Directors has set for the plan.
The performance criteria for the PSP 2025 - 2027 will be the total shareholder return of the company's share (absolute TSR), services segment's revenue growth and sustainability targets related to CO2 emission reduction and increasing diversity in the company's senior and leadership positions.
The PSP 2025-2027 will have approximately 60 participants, including the President and CEO and Kalmar's Leadership Team members.
If all the performance targets for the PSP 2025 - 2027 are fully achieved, the aggregate maximum number of shares to be paid based on this plan is approximately 265,000 shares. The number of shares represents the gross value of the rewards, from which the applicable taxes will be deducted before the shares are delivered to the participants.
Restricted Share Plan
The Restricted Share Plan consists of annually commencing individual restricted share plans. Each plan comprises a restriction period with an overall length of three years, extending to the first half of the fourth year of the individual plan. During the plan period the company may grant fixed share rewards to individually selected key employees.
The rewards are paid to eligible participants in class B shares of Kalmar in one or several tranches latest by the end of the restriction period. The commencement of each new plan is subject to a separate decision of Kalmar's Board of Directors.
The first plan, RSP 2025 - 2027, commences effective as of the beginning of 2025. The aggregate maximum number of shares payable as a reward based on RSP 2025 - 2027 is approximately 26,500 shares (referring to gross earning, from which the applicable payroll tax will be withheld).
Other terms
The value of the rewards payable under the plans is limited by a maximum cap linked to the company's share price development.
If the individual's employment with Kalmar terminates before the payment of the reward, the individual is, as a main rule, not entitled to any reward based on the respective plan.
Kalmar applies a share ownership recommendation to the President and CEO and to the members of its Leadership Team. According to this recommendation each member of Kalmar's Leadership Team is expected to retain at least half of the shares received under the share-based incentive plans of the company until the share ownership in the company corresponds to at least annual gross base salary.
Kalmar Corporation
Board of Directors
For further information, please contact:
Mikko Savela, VP, Performance & Rewards, tel. +358 40 653 1312
Carina Geber-Teir, SVP, IR, Marketing & Communications, tel. +358 40 502 4697
About Kalmar
Kalmar
