Incentive Programs

 

Exel Composites' performance-based incentive program covers all employees. Office employees receive a monthly salary and an annual bonus tied to the attainment of annually established goals emphasising growth and profitability. Productoin employees are also eligible for incentive compensation. Their annual bonus is mainly based on productivity.

The Group has long-term incentive programs for the President and CEO and the Group Management Team and selected key employees of the Company. The aim of the programs is to combine the objectives of the shareholders and the executives in order to increase the value of the Company, to commit the executives to the Company and to offer the executives a competitive reward program based on holding the Company’s shares. The Board of Directors makes the decision on the program annually.

The earning period for the long-term incentive program of 2012 ended in 2014. Based on the program a gross amount of 20,048 matching shares were acquired for the participants in 2015. There is a retention period of two years before the title of the shares is transferred to the participants. No monetary performance reward was earned and therefore no monetary performance reward was paid.

The Group has four long-term incentive programs:

The 2013 program is based on a long-term monetary incentive program and is targeted at 20 executives for the earning period 2013 – 2015. The President and CEO and the members of the Group Management Team are included in the target group of the 2013 program. The potential long-term monetary performance reward from the program is based on the Group’s cumulative Economic Profit and on the Group’s Total Shareholder Return (TSR). The potential reward will be paid in 2016. The maximum reward to be paid on the basis of the earning period 2013 – 2015 will be EUR 1 million.

The 2014 program is based on a long-term monetary incentive program and is targeted at 20 executives for the earning period 2014 – 2016. The President and CEO and the members of the Group Management Team are included in the target group of the 2014 program. The potential long-term monetary performance reward is based on the Group’s cumulative Economic Profit and on the Group’s Total Shareholder Return (TSR). The potential reward will be paid in 2017. The maximum reward to be paid will be EUR 1 million.

The 2015 program is based on a long-term monetary incentive program and is targeted at 25 executives for the earning period 2015 – 2017. The President and CEO and the members of the Group Management Team are included in the target group of the 2015 incentive program. The potential long-term monetary performance reward is based on the Group’s cumulative Economic Profit and on the Group’s Total Shareholder Return (TSR). The potential reward will be paid in 2018. The maximum reward to be paid will be EUR 1.5 million excluding employer’s social costs.  

In February 2015 the Board of Directors approved a new incentive program for the executives of the Company. The aim of the new program is to combine the objectives of the shareholders and the executives in order to increase the value of the Company, to commit the executives to the Company and to offer the executives a competitive reward program. The new program is based on a long-term monetary performance reward, and the program is targeted at approximately 25 executives for the earning period 2015 − 2017. The CEO and members of the Group Management Team are included in the target group of the new incentive program. 

The new program includes one earning period, the calendar years 2015 − 2017. The potential long-term monetary performance reward from the program for the earning period 205 – 2017 will be based on the Group’s cumulative Economic Profit and on the Group’s Total Shareholder Return (TSR). 

The potential reward from the earning period 2015 – 2017 will be paid in 2018. No reward will be paid to an executive, if his or her employment or service with the Group Company ends before the reward payment unless the executive is leaving the Company due to retirement. 

The maximum reward to be paid on the basis of the earning period 2015 – 2017 will be EUR 1.5 million.

In February 2016 the Board of Directors approved a new incentive program for the executives of the Company. The 2016 program is based on a long-term monetary performance reward, and the program is targeted at 20 executives for the earning period 2016-2018. The CEO and the members of the Group Management Team are included in the target group of the new incentive program. The 2016 program includes one earning period, the calendar years 2016-2018. The potential long-term monetary performance reward is based on the Group’s cumulative Economic Profit and on the Group’s Total Shareholder Return (TSR). The potential reward will be paid in 2019.  The maximum reward to be paid will be EUR 1.0 million excluding employer’s social costs.

No reward will be paid to an executive based on the 2013, 2014, 2015 and 2016 programs described above, if his or her employment or service with the Company ends before the reward payment unless the executive is leaving the Company due to retirement or unless the Board decides otherwise.

The cost of the programs will be accounted for as operating expenses during the duration of the programs.

Exel Oyj, Vantaa head office, Mäkituvantie 5, FI-01510 Vantaa, Finland, Tel +358 20 7541 200, Fax +358 20 7541 201