HELSINKI, Finland--(BUSINESS WIRE)--Regulatory News:
Tieto Corporation STOCK EXCHANGE RELEASE 5 February 2015, 9.00 EET
Tieto’s (STO:TIEN)(HEX:T1EIV) Board of Directors has approved two new share-based incentive plans for key employees of Tieto and its subsidiaries, a Performance Share Plan 2015 and a Restricted Share Plan 2015. The aim of the plans is to align the objectives of shareholders and key employees in order to increase the value of the company in the long-term. Tieto will nominate approximately 150 key employees, including Tieto’s Leadership Team, to the plans.
The potential rewards from these new incentive plans will be paid partly in the company’s shares and partly in cash in 2018. The cash proportion is intended to cover taxes and tax-related costs arising from the reward. As a rule, no reward will be paid, if a participant´s employment or service ends before the reward payment. The Board of Directors anticipates that share rewards to be delivered to the participants under the plan will consist of shares to be acquired from the market. Thus, no new shares will be issued in connection with the plan and, therefore, the incentive plan will have no dilutive effect.
Performance Share Plan 2015
The potential reward from the Performance Share Plan 2015 will be based on the relative Total Shareholder Return of Tieto share (TSR), strategic target related to Tieto’s growth and on Tieto’s Earnings per Share (EPS). Performance will be measured during 2015–2017. The rewards to be paid on the basis of the Performance Share Plan 2015 correspond to the value of an approximate maximum of 430 000 Tieto shares, including the proportion to be paid in cash.
Restricted Share Plan 2015
The reward from the Restricted Share Plan 2015 will be based on a valid employment or director agreement of a key employee upon the reward payment. The reward will be paid after the end of a three-year vesting period 2015–2017. The rewards to be paid on the basis of the Restricted Share Plan 2015 correspond to the value of an approximate maximum of 50 000 Tieto shares, including the proportion to be paid in cash.
The Board of Directors
Tieto is the largest IT services company in the Nordics providing full lifecycle IT services. We also provide global product development services for companies in the communications and embedded technologies arena. Through industry insight, technology vision, and innovative thinking, Tieto proactively strives to inspire and engage our customers in finding new ways of accelerating their business.
Building on a strong Nordic heritage, Tieto combines global capabilities with local presence. Headquartered in Helsinki, Finland, Tieto has over 13 000 experts in more than 20 countries. Turnover is approximately EUR 1.5 billion. Tieto’s shares are listed on NASDAQ in Helsinki and Stockholm. www.tieto.com
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