REMUNERATION OF THE PRESIDENT AND CEO
Two share-based incentive plans were established in 2021 covering the past President and CEO Nicolas Cederström Warchalowski. The aim of the plans was to align the objectives of the shareholders and the plan participants for increasing the value of the company in the long-term, to retain the participants at the company and to offer them competitive incentive schemes that are based on earning and accumulating shares.
In the President and CEO’s Matching Share Plan 2021-2023 the past President and CEO was given an opportunity to receive matching shares for his personal investment in Rapala VMC shares after the matching period (FYs 2021-2023). The reward to be paid corresponded to the value of a maximum total of 28 800 Rapala VMC shares, also including the proportion to be paid in cash.
For the past President and CEO, the Key Employees’ Performance Share Plan 2021-2023 provided an allocation that corresponded to a value of an approximate maximum total of 120 000 Rapala VMC shares (including the proportion to be paid in cash) of the potential rewards based on the Rapala VMC’s financial performance criteria and the Company’s share price criterion to be measured in 2023.
As Nicolas Cederström Warchalowski has departed the company neither of the long-term Share-Based Incentives were earned by him and they are deemed void for his part.
The Chairman of the Board Louis d’Alançon has not been offered any variable pay plans during his current tenure as acting President and CEO. However, the Remuneration Committee and the Board of Directors considers variable pay plans for Louis d’Alançon during spring 2023.
More information concerning the actualized remuneration of President and CEO is available in the Group’s Remuneration Report.
Performance Share Plan 2021–2023 for Key Employees
The key employees’ Performance Share Plan includes one three-year performance period, covering the financial years 2021–2023. The rewards to be paid on the basis of the plan correspond to the value of an approximate maximum total of 800 000 Rapala VMC shares including also the proportion to be paid in cash. The potential rewards from the performance period 2021–2023 will be paid partly in the Company’s shares and partly in cash in 2024.
The potential reward from the performance period will be based on the Rapala VMC’s financial performance criteria and the Company’s share price criterion which will be measured during 2023. The financial performance criteria for the performance period are the Rapala VMC group product sales, the Company’s comparable earnings before interest and taxes (comparable EBIT) and the Rapala VMC’s average working capital ratio in 2023.
Allocation of the potential rewards for the Global Management Team (excluding the President & CEO) correspond to the value of an approximate maximum total of 430 000 Rapala VMC shares also including the proportion to be paid in cash.