Incentive schemes of key employees
Hoivatilat has an annual remuneration system covering the entire personnel, which is based on the joint and personal targets set for each employee. The main factors affecting remuneration are growth, profitability and business development. The key employees of Hoivatilat also have a long-term share-based incentive scheme. The Board of Directors will decide on the earnings criteria for each earnings period and on the targets set for them.
Currently, there are two (2) periods in the system: earning period 1 June 2018-30 November 2019 and earning period 1 June 2018-31 May 2021. The earning criterion to be applied to the share reward programme is total shareholder return (TSR) during the earning period. Under this programme, a maximum of 250,000 shares will be paid out to personnel, as well as a cash portion, which is needed to cover the taxes incurred by the participants from the awards. The purpose is to unify the goals of owners and personnel in order to raise the value of the company in the long run, to keep the personnel engaged with the company and offer them a competitive reward system based on the earning and accumulation of company shares.