Lumo Homes plc launches performance matching share plan for its management team

Lumo Homes plc launches performance matching share plan for its management team

The Board of Directors of Lumo Homes plc has resolved to establish a Performance Matching Share Plan for the CEO and the Management Team of the Company. The aim of the new plan is to align the objectives of the shareholders and the Management Team in order to increase the value of the Company in the long term. The plan is intended to encourage members of the Management Team to personally invest in the Company’s shares, to steer them toward achieving the Company’s strategic objectives, to retain them at the Company, and to offer them a competitive incentive plan that is based on acquiring and earning shares of the Company.

“Through the Performance Matching Share Plan, the Board of Directors aims to encourage the management to personally invest in the Company’s shares, thereby strengthening their ownership in the Company. The key performance criterion of the plan is the Company’s total shareholder return (TSR), which strongly links remuneration to the value development for the Company and its shareholders. Combined with the three- and five-year performance periods, the plan forms a competitive framework that encourages long-term commitment”, says Mikael Aro, Chairman of the Board of Lumo Homes plc.

The Performance Matching Share Plan 2026 is divided into two tranches. Rewards from first tranche will be paid in 2030 and rewards from the second tranche in 2032. The length of the performance period is three years for the first tranche and five years for the second tranche. In the plan, the participants have the opportunity to earn a guaranteed matching reward and a performance-based matching reward. The guaranteed matching reward is determined based on the participant’s personal investment and continued employment or service in the Company. The performance-based matching reward is in addition determined based on the achievement of performance targets set for the three- or five-year period.

The performance criterion is the total shareholder return (TSR) of the Company share over the three- or five-year measurement period. The achievement of the targets set for the performance criterion will determine the final proportion out of the maximum reward that will be paid as performance-based reward to participants. The prerequisite for participation in the plan and receiving reward on the basis of the plan is that a participant personally (or through a fully owned holding company) has invested in the Company shares up to the required amount determined by the Board of Directors. Furthermore, payment of the reward requires that the participant’s employment or service in the Company continues until the reward payment, unless a so-called good leaver reason exists. If the participant sells the invested shares during the performance period, the participant loses the reward shares in the same proportion.

The target group of the plan consists of seven (7) people, including the CEO and other members of the Management Team. The rewards to be paid on the basis of the plan correspond to a maximum total value of approximately EUR 2,940,000 in the Company’s shares, including the proportion to be paid in cash. The final number of shares will depend on the participants’ investments, holding of the shares invested, and the achievement of the targets set for the performance criterion. The rewards will be paid partly in the Company’s shares and partly in cash. The cash proportion is intended to cover taxes and social security contributions arising from the reward to the participant.

The CEO is obliged to hold reward shares received from the plan until the CEO’s shareholding in the Company equals twelve (12) months of the CEO’s gross base salary. Other Management Team members are obliged to hold reward shares received from the plan until the total value of the member’s shareholding in the Company equals six (6) months of their gross base salary. Such number of shares must be held as long as the membership in the Management Team or the position as the CEO continues.

As part of the implementation of the performance matching share plan, the Board of Directors has decided to grant interest-bearing loans on an arm’s length basis in the maximum total amount of EUR 980,000 to participants of the plan (and their fully owned holding companies) to finance the acquisition of the Company’s shares. The loans must be repaid in full by the end of June 2032.

Lumo Homes plc

The Board of Directors

For more information, please contact:

Mikael Aro, Chairman of the Board of Directors, contact requests through Lumo Homes’ Executive Assistant Inka Virtanen, tel. +358 20 508 5076 or inka.virtanen@lumo.fi.

Distribution:

Nasdaq Helsinki, key media

Lumo Homes plc is Finland’s largest residential real estate company and a bold innovator in urban living. Our homes are located in the largest growth centres, with excellent transport connections and diverse services nearby. We invest in sustainable, modern and digital solutions that make life in a rental home smooth and flexible. We create better urban living by delivering the best customer experience. Lumo – simply the right home.
 
Lumo Homes plc´s shares are listed on the official list of Nasdaq Helsinki. For more information: https://yritys.lumo.fi/en