Employee Profit-Sharing Plan
In 2020, Bittium had an employee profit-sharing plan that applies to all employees, excluding those covered by other short-term bonus plans. According to the 2020 profit-sharing plan, a separately defined part of Bittium´s operating profit will be distributed to employees as a profit-sharing bonus in proportion to salaries. The goal of the system is to enable the company´s success to be shared with employees and to engage employees.
The variable pay is paid based on the achievement of goals. In 2020, earning period for the variable pay was the calendar year. The targets are determined separately for each earning period. The setting of targets and the review of their achievement is decided on a one-over-one basis. The criteria for the short-term merit pay are the financial and strategic targets of the Company. In 2020, operating result formed the financial targets. In addition, part of the targets may be other Company objectives or personal targets. Personal targets vary between duties.
Management Share-Based Incentive Plan
The management of Bittium group share-based long-term incentive scheme which comprises a Performance Share Plan (“PSP´). The objectives of the Performance Share Plan are to align the interests of Bittium´s management with those of the Company´s shareholders, to promote shareholder value creation in the long term, to commit the management to achieving Bittium´s strategic targets and the retention of Bittium´s management. The Performance Share Plan consists of three annually commencing three-year performance share plans, PSP 20202022, PSP 20212023 and PSP 20222024, each with a one-year performance period, which is followed by the payment of the share reward and a two-year transfer restriction period. The commencement of the following two plans, PSP 20212023 and PSP 20222024, is, however, subject to a separate Board decision. Further information can be found at the company´s website at the address www.bittium.com.