HKScan Corporation             Stock Exchange Release      10 April 2017          at 5:00 p.m.

 

HKScan Board of Directors resolved on key employee share based long-term incentive plan

The Board of Directors of HKScan Corporation has approved a share based long-term incentive plan for the Group´s top management and selected key employees for the years 2017–-2019. The aim of the plan is to align the objectives of the company's management with the interests of the shareholders in developing the company value and to commit the management to achieving the strategic targets of the company through offering them a competitive long-term incentive scheme.

The new share based incentive plan comprises a one-year performance period, the year 2017, which is followed by a restriction period extending to the years 2018–2019.

If the performance targets set by the Board of Directors are achieved, the share rewards attained based on the plan will be paid in listed series A shares of HKScan Corporation in two tranches during the restriction period as follows: 50 per cent of the attained rewards are paid in the year 2018 and 50 per cent in the year 2019.

The potential rewards payable based on the plan will be based on HKScan Group´s return on capital employed (ROCE) and earnings per share (EPS) in the performance period.

Eligible to participate in the new share based incentive plan are 28 positions belonging to HKScan´s top management and other selected key employees. If the performance targets set for the plan are fully achieved, the aggregate maximum number of shares to be delivered based on the plan is 743 000 listed series A shares of HKScan Corporation (gross before the deduction of applicable taxes Based on the above, the aggregate value of the plan at its maximum, estimated based on the average share price on 7 April 2017 (3.40 euros) is approximately EUR 2.5 million.


Other terms

If the employment or service relationship of the key employee ends before the individual share tranche is paid, that respective share tranche will not be paid to the person concerned.

HKScan Corporation applies a share ownership recommendation to the members of the Group Leadership Team, according to which the President and CEO and the other members of the Group Leadership Team are expected to accumulate and, once achieved, maintain the following share ownership in HKScan: In case of the President and CEO, a share ownership corresponding to his gross annual base salary and in case of the other members of the Group Leadership Team, a share ownership corresponding to 50 per cent of their gross annual base salary. At least 50 per cent of the net shares received based on the share based incentive scheme are expected to be retained until the share ownership of the individual in HKScan Corporation, either based on shares received based the share based incentive scheme or otherwise acquired or held, has reached the before-mentioned level.

The Board of Directors anticipates that no new shares will be issued in connection with the share-based incentive plan and that the plan will therefore have no dilutive effect on the registered number of the company’s shares.


HKScan Corporation
Mikko Nikula
Chairman of the Board of Directors


Further information is available from Mikko Nikula, Chairman of the Board of Directors of HKScan Corporation. Kindly submit a call-back request to Marjukka Hujanen, p. +358 10 570 6218

HKScan is the leading Nordic food company. We sell, market and produce high-quality, responsibly-produced pork, beef, poultry and lamb products, processed meats and convenience foods under strong brand names. Our customers are the retail, food service, industrial and export sectors, and our home markets comprise Finland, Sweden, Denmark and the Baltics. We export to close to 50 countries. In 2016, HKScan had net sales of nearly EUR 1.9 billion and some 7 300 employees.


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