On 12 March 2015, Digia Plc's Board of Directors decided to establish a new share-based incentive scheme for 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, promote management commitment, and offer management a competitive incentive scheme based on shareholding in the company. The scheme chosen on 12 March 2015 replaced the previous share-based incentive scheme, which ran until 2016.
The new scheme comprises three earning periods, which are the calendar years 2015–2017. The earnings criteria are the consolidated earnings per share and consolidated net sales, according to formulae settled annually by the Board. For each earnings period, the CEO and other key personnel covered by the scheme are entitled to a bonus equivalent to a maximum total of 115,000 Digia Plc shares. 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. A maximum total of 112,499 shares have been granted as share bonuses from the scheme during the financial period. 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. The share-based incentive schemes are described in more detail in Note 19 Share-based payments.
EUR 0.2 million in expenses were incurred by the scheme during the 2016 financial year, and EUR 0.7 million in 2015–2016.
Digia has an agreement with Evli Awards Management Ltd for the coordination of the company's share-based incentive schemes, their associated share management, and the payment of incentives to individuals in accordance with the terms and conditions of the schemes.
According to the list of shareholders on 31 December 2016, Digia’s Board of Directors and CEO owned shares in the company as follows (includes the holdings of related-parties and related-party organisations):
|Board of Directors||No. of shares|
|Pertti Kyttälä, Chair of the Board||
|Robert Ingman, Vice Chair of the Board||4,520,000|
|President & CEO||No. of shares|
At year-end 2016, the CEO and members of the Board of Directors held a total of 4,531,240 of the company’s shares and votes, representing 21.7 per cent of all shares.