Share-based Payments

Share incentive scheme and management ownership

The company has a share bonus system as a part of its senior management commitment and incentive scheme.

On 19 December 2013, Digia Plc's Board of Directors decided to establish a new share-based incentive scheme for the Chief Executive Officer and other members of senior management. The scheme comprises three earning periods, which are the calendar years 2014–2016. The earnings principles are the consolidated earnings per share and consolidated net sales, according to formulae settled annually by the Board. According to the scheme, rewards totalling a maximum value equivalent to 200,000 shares will be paid for each earning period.

All bonuses are paid as a 50/50 combination of shares and cash. The cash portion of the bonus will primarily be used to cover taxes and other comparable costs of the scheme. The system involves no vesting periods limiting the sale of shares.

The payment of bonuses according to the share-based incentive schemes is subject to the employee in question being employed by the company on the payment date.

Digia's previous share-based incentive scheme covered the period from 2010 to 2013 and included the CEO and other members of the Group Management Team. No rewards were paid out under this scheme in 2014.

According to the list of shareholders dated 31 December 2014, Digia’s Board of Directors and CEO owned shares in the company as follows:

   
Pertti Kyttälä 0
Robert Ingman 20,000 ¹
Kari Karvinen 1,200,000
Tommi Uhari 0
Juha Varelius 184,758
Päivi Hokkanen 8,170
Seppo Ruotsalainen 0
Leena Saarinen 1,600
¹ Shares owned by Ingman Group Oy Ab are not included.

 

At the year-end, the shares held by the Board members and the CEO represented 6.7% of the company’s shares and votes.