Kojamo plc Stock Exchange Release, 15 February 2023 at 8:45 a.m. EET
Kojamo’s Board of Directors resolved on the long-term incentive plan’s performance period 2023–2025 and a launch of a new restricted share plan (RSP)
Kojamo plc maintains a long-term incentive plan launched in 2021 for the group’s key employees with performance periods of 2021–2023, 2022–2024 and 2023–2025. The Board of Directors has resolved on the performance criteria, targets and target group for the performance period of 2023–2025.
During the performance period of 2023–2025 the incentive plan is targeted at the members of the Management Team and other key employees, maximum 28 persons in total. The possible reward for the performance period of 2023–2025 is based on the group’s total revenue, funds from operations (FFO) per share, apartment-specific CO2 emission reduction target for years 2023-2025, and Loan to Value ratio.
The weight of group’s total revenue, funds from operations (FFO) per share, and Loan to Value ratio is 30 per cent, and apartment-specific CO2 emission reduction target’s weight is 10 per cent in the programme. Apartment-specific CO2 emission reduction minimum, target, and maximum levels are 96.0, 141.0, and 186.0 kg. The LTV ratio target is reached when the ratio remains under 50 per cent.
The possible reward for the performance period will be paid during the year following the expiry of the performance period partially in shares in the company and partially in cash. The rewards to be paid on the basis of the performance period of 2023–2025 correspond to the value of maximum total of 178,000 shares including the proportion to be paid in cash.
New Restricted Share Plan (RSP)
The Board of Directors of Kojamo approved to establish a new restricted share programme for the years 2023-2025. The programme will be used in specific situations decided by the Board of Directors separately. The programme consists of individual, annually commencing maximum three-year long restricted share plans within which the participants have the opportunity to receive a fixed number of shares as a long-term incentive and retention award.
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.
2023-2025 commitment period will last until the end of 2025 and the possible reward will be paid during the year following the expiry of the period partially in shares in the company and partially in cash. The maximum gross number of shares to be granted is 50,000 shares.
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 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 gross amount of share award to be paid for each performance period shall not exceed 400 per cent of the participant’s monetary salary of the last calendar year of the performance period.
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 value in the long term and commit the key employees to the company and to the implementation of the company’s strategy and offer them a competitive incentive plan based on 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/