SHERIDAN, WYOMING – Feb. 15, 2025, Teleste Corporation (HEL: TLT1V) has announced the establishment of a new share-based long-term incentive program (LTI 2025 Program) for its key employees. The program, approved by the Board of Directors, aims to align the goals and interests of key employees with those of Teleste shareholders, fostering long-term value creation, driving a performance-oriented culture, retaining key talent, and offering competitive compensation.
LTI 2025 Program: Structure and Objectives
The LTI 2025 Program comprises three distinct share-based incentive plans: a Matching Share Plan, a Performance Share Plan, and a Restricted Share Plan. Approximately 38 key employees are eligible to participate. The overarching objective is to incentivize long-term performance and commitment to increasing shareholder value.
Matching Share Plan 2025-2027
The Matching Share Plan features a single matching period spanning the financial years 2025-2027. Participants are given the opportunity to receive matching shares based on their personal investment in Teleste Corporation shares. Rewards are paid after the conclusion of the matching period.
The maximum gross rewards for the 2025-2027 matching period are equivalent to approximately 114,250 Teleste shares. The current estimated maximum aggregate value of this period is approximately €309,618, based on the average share price of the last trading day preceding the announcement and assuming full participation and investment by eligible employees.
Performance Share Plan 2025-2027
The Performance Share Plan also covers the 2025-2027 financial years. Participants can earn Teleste shares based on performance metrics. Rewards are paid after the end of the performance period.
For the 2025-2027 period, rewards are tied to the Group's cumulative earnings per share (EPS) for 2025-2027 and the Total Shareholder Return (TSR) of Teleste shares for the same period. Participation in this plan requires participation in the Matching Share Plan's 2025-2027 matching period.
The maximum gross rewards for the 2025-2027 performance period are equivalent to approximately 685,500 Teleste shares. The current estimated maximum aggregate value is approximately €1,857,705, based on the average share price and assuming full participation and investment in the corresponding Matching Share Plan period.
Restricted Share Plan 2025-2027
The Restricted Share Plan is designed as a flexible tool for the Board of Directors and CEO to use in specific situations, such as retaining key talent, attracting new employees, or addressing other strategic needs.
The maximum gross rewards allocated during 2025-2027 under this plan are equivalent to 50,000 Teleste shares. The current estimated maximum aggregate value is approximately €135,500, based on the average share price.
Reward Payment and General Conditions
Rewards will be paid partly in Teleste Corporation shares and partly in cash. The cash portion is intended to cover taxes and tax-related expenses incurred by participants. Generally, no reward is paid if a participant's employment or director contract terminates before the reward payment date.
The Board of Directors anticipates that no new shares will be issued in connection with the LTI 2025 Program, thus avoiding any dilution of existing shares. Rewards payable under the Performance Share Plan and Matching Share Plan will be capped if pre-defined limits set by the Board are reached.
Strategic Implications for Teleste
The LTI 2025 Program represents a significant investment in Teleste's human capital and a strong commitment to aligning employee incentives with long-term shareholder value. By linking compensation to key performance indicators like EPS and TSR, the program encourages a focus on profitability and shareholder returns. The inclusion of a Matching Share Plan further reinforces this alignment by requiring personal investment from participants. The Restricted Share Plan provides flexibility to address specific talent management needs. The program is designed to be competitive within the industry, helping Teleste attract, retain, and motivate top talent. It also sends a clear signal to the market about the company's commitment to long-term growth and value creation. The structure is designed to reward sustained performance, rather than short-term gains, aligning with a long-term strategic view.
For more information, visit www.teleste.com.