Major events after the balance sheet date

Events after the Financial Year

On 2 February 2017, Digia Plc's Board of Directors decided to establish a new share-based incentive scheme. The Board of Directors will confirm the target group of this long-term incentive scheme separately. Principally the target group consists of the CEO and other members of the company’s senior management. The purpose of this scheme is to align the objectives of the company’s shareholders and management in order to increase shareholder value and promote management commitment to the company and its long-term objectives. This scheme replaces the earlier share-based incentive scheme that ran until 2017.

The new scheme comprises the calendar years 2017–2019. Scheme participants may earn shares in the company if the criteria set for the three-year earnings period by the Board of Directors are achieved.

The earnings criteria are net sales and earnings per share (EPS). There are three earnings periods for the EPS indicator, 2017, 2018 and 2019, and the Board of Directors will set the criteria for each at the beginning of each period. The earnings period for the net sales indicator is 2017–2019. The target for net sales is the net sales target set for 2019. During the bonus period, the company’s CEO and other scheme participants are entitled to a bonus equivalent to a maximum of 500,000 new Digia Plc shares. If the terms are met, the bonuses based on the new scheme will be paid at the end of the reward period in 2020 for both indicators. All bonuses under this scheme will be 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 arising from the scheme.

The payment of bonuses from the share-based incentive schemes is subject to the employee in question being employed by the company on the payment date. Under certain conditions the Board of Directors may decide on potential bonuses on a pro rata basis for the current and completed earnings periods.