To ensure management's motivation and commitment, Alma Media has a share-based incentive system LTI 2015.
Share-based incentive plan (LTI 2015)
The Board of Directors of Alma Media Corporation has approved the establishment of a new long-term share-based incentive programme for the key management of Alma Media (below LTI 2015).
The objective of LTI 2015 is to align the interests of the participants with those of AlmaMedia’s shareholders by creating a long-term equity interest for the participants and, thus, to increase the company value in the long term as well as to drive performance culture, to retain participants and to offer them with competitive compensation for excellent performance in the company.
LTI 2015 consists of annually commencing individual plans, each subject to separate Board approval. Each of the individual plans consists of three main elements: an investment in Alma Media shares as a precondition for the key management member’s participation in LTI 2015, matching shares based on the above share investment and the possibility to earn performance matching shares.
The matching share plan
In the matching share plan, the participant receives a fixed amount of matching shares against an investment in Alma Media shares. In the first matching share plan, which commenced in 2015 (LTI 2015 I), the participant receives two matching shares for each invested share free of charge after a two-year vesting period, provided that the other conditions stipulated for the receipt of the share-based incentive by the terms of the plan are still satisfied at the time.
The performance matching plan
The performance matching plan comprises a five-year performance period in total. The potential share rewards will be delivered in tranches after three and five years if the performance targets set by the Board of Directors are attained.
The performance measures used in the first performance matching plan commencing in the year 2015 are based on the company’s profitable growth and share value. If the performance targets set by the Board of Directors are attained in full, the participant will receive in total four matching shares for each invested share free of charge, provided that the other conditions stipulated for the receipt of share-based incentive by the terms of the plan are still satisfied at the time.
Share-based incentive scheme LTI 2015 II, launched in 2016
During the reporting year 2016, the Board of Directors of Alma Media Corporation decided to launch the next share-based incentive programme to begin in 2016 (LTI 2015 II) based on the LTI 2015 arrangement.
The main terms of the 2016 incentive scheme correspond to those of the share-based incentive scheme that began in 2015.
|Share-based incentive scheme|
|Based on share investment (shares max)||Performance matching (shares max)||Maximum number of people entitled to participate|
|Launched in 2015|
LTI 2015 I
|Launched in 2016 |
LTI 2015 II
The Board of Directors has estimated that no new shares will be issued in connection with LTI 2015. Therefore, the plan will have no dilutive effect on the number of the company’s registered shares.
The Annual General Meeting of Alma Media Corporation held on 17 March 2016 authorised the Board of Directors to decide on the repurchase of a maximum of 824,000 shares in one or more lots, and further authorised the Board of Directors to decide on a share issue by transferring shares in possession of the company to implement incentive programmes.
The allocation of the share-based incentive scheme for the President and CEO and the group Executive Team is available on Remuneration page.