Talenom Plc, Stock exchange release 20 May 2021 at 14:00 EEST
The Board of Directors of Talenom Plc resolved on the performance criteria and targets for the key employee incentive plans in the 2021–2023 performance period and on the issuance of option rights under the option rights 2021 plan
The Board of Directors of Talenom Plc has today resolved on the performance criteria and targets for the 2021–2023 performance period of the Performance Share Plan it established in February 2020 and the maximum number of shares to be issued. The Board of Directors has also resolved on the issuance of option rights to key employees in deviation from the pre-emptive subscription right.
The aim of the incentive plans is to align the objectives of the shareholders and key employees to increase the value of the Company in the long term, commit the key employees to the Company and offer them competitive incentive schemes based on earning shares in the Company.
Performance Share Plan 2020–2024
On 25 February 2020, the Company announced that it had established a Performance Share Plan 2020–2024. The Performance Share Plan consists of three performance periods, covering the calendar years 2020–2022, 2021–2023 and 2022–2024. The Board of Directors resolves on the plan’s performance criteria and the targets to be set for each criterion at the beginning of each performance period.
In the 2021–2023 performance period, the reward will be based on the Group’s net sales, operating profit and the execution of strategic projects. The rewards paid based on the performance period will correspond to the value of maximum total of 250,000 Talenom Plc shares, including also the proportion to be paid in cash. In the 2021–2023 performance period, approximately 85 persons are included in the target group of the Performance Share Plan, including the Company’s Executive Board members.
Thw potential reward based on the plan will be paid partly in the Company’s shares and partly in cash after the end of a performance period. The cash proportion is intended to cover taxes and tax-related expenses arising from the reward to a participant. As a rule, no reward is paid, if the participant’s employment or service ends before the reward payment.
Each member of the Company’s Executive Board is obliged to hold at least 50 per cent of the net number of shares paid to them on the basis of the plan until the value of his or her shareholding in the Company is equal to the value of his or her gross annual salary. These shares must be held for as long as the person remains a member of the Executive Board.
Restricted Share Plan 2021
The Company has a valid Restricted Share Plan intended for selected key employees, including the Company’s Executive Board members. The reward from the Restricted Share Plan 2021 is based on a valid employment or service and the continuity of the employment or service during the vesting period and other possible terms imposed by the Board of Directors.
The rewards in the period 2021–2023 will correspond to the value of a maximun total of 120,000 Talenom Plc shares, including also the proportion to be paid in cash. The reward is paid partly in the Company’s shares and partly in cash after the end of a 12–36-month vesting period.
The Board of Directors has resolved on the distribution of up to 600,000 option rights free of charge to 22 key employees of Talenom Group in accordance with the terms of Talenom Plc’s Option Rights 2021 plan. The terms are appended to this release. The resolution is based on an authorisation granted to the Board of Directors by the Annual General Meeting held on 3 March 2021.
There is a weighty financial reason from the company's point of view to issue the option rights and deviate from the pre-emptive subscription right because the options are intended to form part of the incentive and commitment plan for key employees.
The option rights will entitle their holders to subscribe to a total maximum of 600,000 new shares or shares held by the Company. The shares to be subscribed on the basis of the option rights now being issued account for a maximum total of 1.4 per cent of all shares in the Company and the votes conferred by the shares following the potential subscription if new shares are issued for the subscription.
The subscription period for shares subscribed using option rights is 1 March 2026–28 February 2027. The subscription price will be determined on the basis of the volume-weighted average price of the company’s shares on the issue date of the options. The subscription price for shares will be recorded in the Company’s invested unrestricted equity fund.
BOARD OF DIRECTORS
CEO, Talenom Plc
tel. +358 40 703 8554
Talenom is an agile and progressive accounting firm established in 1972. Our business idea is to make day-to-day life easier for entrepreneurs with the easiest-to-use digital tools on the market and highly automated services. In addition to comprehensive accounting services, we support our customers’ business with a wide range of expert services as well as financing and banking services. Our vision is to provide unbeatable accounting and banking services for SMEs.
Talenom has a history of strong growth – the average annual increase in net sales was approximately 15.5% between 2005 and 2020. At the end of 2020, Talenom had 912 employees in Finland and Sweden at a total of 47 locations. Talenom’s share is quoted on the main list of the Helsinki Stock Exchange.