Incentive systems

Annual profit sharing plan

Aspocomp has an annual profit sharing plan covering all employees. The plan pays cash bonuses based on pre-set targets for net sales, operating income and operating cash flow. The Board determines the targets and criteria for bonus payment annually.

Stock Option Program 2014

The Board of Directors of Aspocomp Group Plc decided on May 15, 2014 to issue in total a maximum of 390,000 Stock Options to the company’s CEO in accordance with the terms and conditions of the Stock Option plan. The issue, which has been made in deviation from the shareholders’ pre-emptive subscription rights, is based on the authorization by the Annual General Meeting held on April 23, 2013. The Stock Options are issued free of charge. Each Stock Option shall entitle its holder to subscribe for one new share in Aspocomp Group Plc. 130,000 of the issued stock options will be marked with letter “A”, 130,000 with letter “B” and 130,000 with letter “C”. The share subscription price of the stock options A is the trade volume weighted average quotation of the company’s share on Nasdaq OMX Helsinki Oy during March 1 – March 31, 2014 (EUR 0.99), of the stock options B the trade volume weighted average quotation of the share during March 1 – March 31, 2015 and of the stock options C the trade volume weighted average quotation of the share during March 1 – March 31, 2016. The share subscription periods for the Stock Options are for Stock Options A: May 1, 2016 – April 30, 2018, Stock Options B: May 1, 2017 – April 30, 2019 and Stock Options C: May 1, 2018 – April 30, 2020. There were weighty financial reasons for the issuance of the Stock Options, because the Stock Options are intended to form a part of the CEO’s compensation and incentive scheme. The shares subscribed for with the Stock Options equal in total to a maximum of 6.09 per cent of the shares in the Company. Further information on the Stock Option Plan 2014 as well as the Terms and Conditions of the Stock Options 2014 are available here.

Share reward plan for key personnel 2016-2019

Aspocomp also has a share reward plan for its key personnel. The four-year plan consists of approximately 20 persons, including members of the Management Team (except for the CEO) and covers the fiscal years 2016-2019. Those included in the plan may, based on achieved targets, annually be rewarded with a maximum of 100,000 shares of Aspocomp Group Plc, corresponding to approximately 1.6 percent of the current total amount of outstanding shares. Out of such amount, a maximum of 10,000 shares may annually be granted to each of the members of the Management Team. The maximum reward is expressed as a number of shares of which one half (1/2) is paid in shares and one half (1/2) consists of a cash payment, the amount of which is determined on the basis of the value of the share reward at the time of the payment. The Board shall decide each year the plan’s performance criteria according to which the possible share reward is determined. Shares received on the basis of the share reward plan shall be held at least 36 months calculated from their entry on the book-entry account of the recipient. Should a target person give notice during the commitment period, he or she is required to return the shares to the company. Further information on the Share reward plan is available below.