Kojamo plc Stock Exchange Release, 15 February 2024 at 8:45 a.m. EET
Kojamo’s Board of Directors resolved on a new plan period 2024-2026 in the key employee long-term incentive scheme
The Board of Directors of Kojamo plc resolved on the commencement of a new plan period in the share-based long-term incentive scheme targeted to the company’s key employees. It comprises a performance-based long-term incentive plan (“PSP”) targeted to Kojamo’s management and selected key employees and a restricted share plan (“RSP”) which serves as a complementary share-based retention plan for specific situations.
PSP 2024-2026
The next individual plan within the PSP structure, PSP 2024-2024, commences as of the beginning of 2024 and the rewards potentially earned thereunder will be paid in listed shares of Kojamo plc during H1 2027. The payment of the rewards is conditional on the achievement of the performance targets set by the Board of Directors for the plan.
The performance measures based on which the potential share rewards under PSP 2024-2026 will be paid are Total revenue (with 30% weight), Group’s FFO (weight 30%), Long-Term Investment Grade Rating (weight 30%) and Apartment-specific reduction in CO2 emissions for the years 2024-2026 (weight 10%), where the reduction minimum, target, and maximum levels are 96.0, 141.0, and 186.0 kg.
PSP 2024-2026 is targeted to the members of Kojamo’s Management Team and other selected key employees, maximum 24 persons in total.
If all the performance targets set for PSP 2024-2026 are fully achieved, the aggregate maximum number of shares to be paid based on this plan is 214,200 shares (referring to gross reward, from which the applicable payroll tax is withheld before share delivery).
RSP 2024-2026
The next individual plan within the RSP structure, RSP 2024-2026, commences as of the beginning of 2024 and the share rewards potentially granted thereunder will be paid in listed shares of Kojamo plc during H1 2027 at the latest.
The aggregate maximum number of shares payable as a reward based on RSP 2024-2026 is 65,000 shares (referring to gross reward, from which the applicable payroll tax is withheld before share delivery).
The company selects the participants of each commitment period separately. Besides the precondition that the participant is continuing his/her employment or service relationship with the company throughout the programme, the programme may include participant specific or company or business unit specific criterion.
Ownership obligation and conditions for reward payment
The group’s CEO must hold 50 per cent of the net number of shares paid to him based on the whole incentive plan, until his/her total shareholding in the company corresponds to the value of his/her annual gross salary.
Other participants must hold 50 per cent of the net number of shares paid to them based on the whole incentive plan, until their total shareholding in the company corresponds to the value of 50 per cent of their annual gross salary. Such amount of shares must be held as long as the participant’s employment or service continues in a company belonging to the Kojamo group.
In case a key employee’s service in the company is terminated prior to the payment of the reward, usually no reward will be paid.
The value of the rewards payable based on the above-described plans is limited by a maximum cap linked to the value of the company’s share.
The aim of the incentive plan
The incentive plan aims to align the interests of Kojamo’s shareholders and key employees in order to increase the company’s shareholder value in the long term, to commit the key employees to the company and to the implementation of the company’s strategy and to offer them a competitive incentive plan based on the earning and accumulation of the company’s shares.
For more information, please contact:
Markus Kouhi, General Counsel, Kojamo plc, tel. +358 20 508 4238, markus.kouhi@kojamo.fi
Distribution:
Nasdaq Helsinki, key media
Kojamo is Finland’s largest private residential real estate company and one of the biggest investors in Finland. Our mission is to create better urban housing. Lumo offers environmentally friendly housing and services for the city dweller who appreciates quality and effortlessness. We actively develop the value of our investment properties by developing new properties and our existing property portfolio. We want to be the property market frontrunner and the number one choice for our customers. Kojamo’s shares are listed on the official list of Nasdaq Helsinki. For more information, please visit https://kojamo.fi/en/