Cargotec Corporation and Konecranes Plc have on 1 October 2020 signed a combination agreement and a merger plan to combine the two companies through a merger (“Transaction”). Information on the Transaction is available on the stock exchange release issued on the same day.
The Board of Directors of Cargotec Corporation has decided to establish a new share-based incentive programme for the Group key employees. The new Restricted Share Unit Programme 2020 (“Programme”) is intended to function as a bridge programme for the transition period before the closing of the Transaction and forming the combined company in the merger (“Transition Period”). The aim of the Programme is to align the objectives of the shareholders and the key employees, to secure business continuity during the Transition Period, and to retain key employees at the Company.
The reward from the Programme is conditional to the closing of the Transaction. In addition, the reward is based on a valid employment or service and the continuity of the employment or service during the waiting period. The reward is paid partly in shares and partly in cash, after the end of the waiting period, ending on the closing date of the Transaction. Shares received as a reward in the Programme may not be sold, transferred, pledged or otherwise assigned during the 12-month lock-up period. The lock-up period begins on the date following the closing date of the Transaction.
The Programme is intended for approximately 70 Cargotec Group’s key employees, including selected Leadership Team members. The rewards to be allocated on the basis of the Programme will amount up to an approximate maximum total of 100,000 Cargotec Corporation class B shares. In addition, a cash proportion is included in the reward to cover taxes and tax-related costs arising from the reward.