The Board of Directors of Toivo Group has decided on a long-term incentive program for key personnel
Toivo Group Plc – Company release
12th December 2024 at 8:00 a.m..
The Board of Directors of Toivo Group Plc (“Company” or “Toivo”) has decided on a share-based incentive plan for the Group's key personnel for the years 2025–2027. The purpose of the plan is to align the objectives of the shareholders and key personnel to strengthen the Company's value development in the long term, to commit key personnel to the Company, and to offer them a competitive share-based incentive plan linked to the Company’s share value development. The plan is targeted at members of the Company’s management team and other current or new recruited key personnel as determined by the Board of Directors. The Company currently has a share-based incentive plan in place for 2022–2024, which the new plan resembles in many respects.
The new share-based incentive plan for 2025–2027 includes three (3) one-year performance periods, each beginning on January 1 and ending on December 31 of the respective years 2025, 2026, and 2027. The rewards to be paid under the incentive plan are based on the achievement of targets set for the participants for each performance period. Payment of the rewards earned for each performance period is subject to a one (1) year waiting period, such that the reward amount accrued during a performance period is confirmed by the end of February of the calendar year following the performance period and paid to the key personnel covered by the plan approximately by the end of March, one (1) year after the confirmation of the reward amount. For example, the reward earned during the performance period from January 1 to December 31, 2025, will be confirmed by the end of February 2026 and paid by approximately March 2027. If a key employee resigns before the reward is paid, the reward is generally not paid
The Company’s Board of Directors will confirm the participants for each performance period, define the performance criteria applicable during the period, and determine the maximum gross reward amount payable for each period in Toivo shares, including potential cash components to cover taxes and tax-like charges. The rewards to be paid under the new share-based incentive plan are estimated to correspond to a maximum of 1,800,000 Toivo shares, including any cash portion for taxes and tax-like charges. Over the three years, the maximum number of shares distributed under the incentive program is estimated to represent approximately 3.1% of the Company’s current total number of shares.
The Board of Directors confirmed a total of 17 key personnel of the Company as participants in the first performance period (January 1–December 31, 2025) under the new share-based incentive plan and approved the targets to be monitored for the performance period. According to the Board’s decision, the performance criterion for the 2025 period will be the Company’s profitability during the 2025 financial year. The rewards payable for the first performance period are estimated to correspond to a maximum of 600,000 Toivo shares.
The issuance of shares under the approved share-based incentive plan is conditional upon the decision of the Company’s General Meeting to authorize the Board of Directors to decide on a share issue for the purpose of paying the rewards.
Toivo Group Plc
Board of Directors
Further information
Markus Myllymäki
CEO
Toivo Group Plc
Tel. +358 (0)40 847 6206
markus.myllymaki@toivo.fi
Certified Adviser: Nordic Certified Adviser.
About Toivo
Toivo is a Finnish real estate company that was founded in 2015. Its business consists of project development and long-term ownership of apartments. The Company’s business model is unique as Toivo’s business combines the value chain of real estate business from development and construction to ownership, management and rental of a completed property. Toivo manages the entire life cycle of properties with its own team, from raw land development to tenancy agreement negotiations and property maintenance. This way Toivo is able to generate additional value to its customers, shareholders and stakeholders.
Toivo’s strategy is to develop properties in accordance with the Toivo concept. The properties aim for a strong development margin and a stable and attractive return, and in this way enable long-term ownership and the generation of higher additional value to Toivo’s customers. Toivo has a knowledgeable and experienced team of experts with strong merits in the real estate business. The members of Toivo’s team have been involved in the development and construction of over 17,000 apartments, and they have an average of ten years of experience in the real estate business.
Toivo’s revenue in 2023 was EUR 43,7 million and its operating profit was EUR -0,3 million.