Rovio Entertainment Corporation Stock Exchange Release Jan 24, 2020 at 10.05 a.m. EET
Rovio Entertainment establishes a new share-based long-term incentive program
The Board of Directors of Rovio Entertainment Corporation has decided to establish a performance share plan for key employees including CEO and members of the leadership team.
The objective of the Performance Share Plan is to motivate the key employees to work to increase shareholder value in the long term by offering them a share-based reward for achieving the set performance criteria established by the Board of Directors of Rovio.
The Performance Share Plan consists of three (3) annually commencing performance periods, covering the consecutive calendar years of 2020, 2021 and 2022. Each performance period is directly followed by a one-year waiting period. Waiting periods cover calendar years 2021, 2022 and 2023. The Performance Share Plan offers the participants a possibility to earn shares for reaching the required levels set for the performance criteria. The performance criteria for the plan are Rovio’s Adjusted Operating Profit (EBIT, %, Hatch Entertainment Ltd. excluded) and Relative Games Revenue Growth (%). The required performance levels will be decided by the Rovio Board of Directors on annual basis for each performance period at a time.
The potential rewards will be paid partly in shares and partly in cash after the end of each relevant waiting period in spring 2022, 2023 and 2024. The cash proportion is intended to cover taxes and tax-related costs arising from the rewards. As a rule, no reward will be paid if a participant´s employment or service ends before the reward payment.
The rewards to be paid on the basis of the performance period 2020 correspond to the value of an approximate maximum total of 738,000 Rovio Entertainment Corporation shares, including the proportion to be paid in cash.
A member of the Leadership Team must hold 50 per cent of the net shares received within the Performance Share Plan until the member´s total shareholding in the company corresponds to the value of 50 per cent of the member´s annual gross salary as long as the membership in the Leadership Team continues.
Rovio’s Restricted Share Unit (RSU) Plan will continue as published on May 17, 2018. A total of 453 195 RSUs have been allocated to key employees in 2018 and in 2019 with payout latest in 2022. In order to retain key personnel in Rovio, the number of RSUs to be allocated in the RSU Plan during the following 12 months is a maximum total of 644,000. At this moment, the rewards to be paid on the basis of the RSU Plan correspond to the value of an approximate maximum total of 1,097,195 Shares, including also the proportion to be paid in cash.
ROVIO ENTERTAINMENT CORPORATION
The Board of Directors
Kati Levoranta, CEO, tel. +358 207 888 300
Nasdaq Helsinki Ltd
Rovio Entertainment Corporation is a global, games-first entertainment company that creates, develops and publishes mobile games, which have been downloaded 4.5 billion times so far. Rovio is best known for the global Angry Birds brand, which started as a popular mobile game in 2009, and has since evolved from games to various entertainment and consumer products in brand licensing. Today, Rovio offers multiple mobile games, animations and has produced The Angry Birds Movie, which opened number one in theatres in 50 countries. Its sequel, The Angry Birds Movie 2, released worldwide in August 2019. Rovio is headquartered in Finland and the company’s shares are listed on the main list of Nasdaq Helsinki stock exchange with the trading code ROVIO. (www.rovio.com)