Changes for the Business Year 2019
LTI-Plan design changes as of 1 January 2019
Based on the input seeked from numerous shareholders and proxy advisors after the approval of the 2017 Compensation report, the Board of Directors amended the LTI-Plan effective for the performance year 2019.
The LTI-Plan 2019 rules can be summarized as follows:
- –The entirety of the award will remain to be granted as performance shares. The vesting of the performance shares is conditional upon the fulfillment of future performance conditions.
- –The performance conditions include for 50% Earnings per Share (EPS) as internal measure and for 50% relative Total Shareholder Return (rTSR) as external measure. Therefore, the performance criteria are well balanced in terms of both internal and external views.
- –The EPS value targets are aligned with the ambitious Strategy 2020 goals of GF.
- –The rTSR targets are linked to the SMI-Mid and focuses on performance at and above median; hence there will be no payout below median performance.
- –The vesting period is three years, followed by a further blocking period of two years on the vested shares. The plan is truly long-term performance focused.