BONUS SCHEME AND REWARDING
The Aspo Plc management bonus scheme consists of the employees’ fixed monthly salary, a bonus paid on the impact of their tasks on the company result, management pension benefits, and a share-ownership plan.
Aspo Plc’s Board of Directors makes decisions on the salaries of the Group’s CEO and Management Board members, other financial benefits, and the basis of the bonus scheme.
Bonus scheme
The maximum amount of the bonuses of Aspo Plc’s CEO and other executive officers may vary on the basis of the impact of their tasks on the company result. The maximum amount of bonuses to be paid is a sum corresponding to an employee’s salary for three to six months; for the CEO, a sum corresponding to his salary for six months. The criteria used in the bonus scheme include Group level result requirements and requirements for the area for which the executive has the responsibility.
Share-ownership plan
In addition to the bonus plan, the Aspo Plc Board of Directors has made a decision on a share-ownership incentive plan for the Group’s key personnel, including Aspo Plc’s CEO and the Management Board. The plan earning period started on January 1, 2009, and will end on December 31, 2011. Participation in the plan and rewarding requires that the key employee obtains a number of Aspo Plc shares specified by the Board of Directors in advance.
The potential gain is based on continuation of the key employee’s employment relationship and Aspo Group’s cumulative Earnings per Share indicator (EPS) in 2009–2011. The potential gain will be paid partly in Aspo shares and partly in cash between January and March 2012. The proportion to be paid in cash will cover taxes and tax-related costs arising from the bonus.
Furthermore, the Board decided to continue the 2006 management share-ownership plan by granting the people included in the plan the possibility to receive Aspo shares in spring 2010. The original plan was to end the plan in the spring of 2010. This plan encompasses part of the Management Board. The potential gain will be paid partly in Aspo shares and partly in cash. The proportion to be paid in cash will cover taxes and tax-related costs arising from the bonus. The employee must retain ownership of the shares until October 1, 2010. If the employment relationship ends before this date, the shares received as reward must be returned to the company without any compensation.
Pension benefits
Aspo Plc’s Board of Directors has ratified a voluntary group pension insurance policy and a payment-based pension plan concerning the CEO and three other persons. Group pension will annually accumulate on the basis of the salary of each employee for which tax is withheld in advance. The group pension insurance policy retirement age is 60 years.