Long-term incentives

The long-term incentives programs are governed by the Board of Directors. There are a limited number of executives participating in long-term incentive programs, and all participants are nominated by the President and CEO and approved by the Board of Directors. 

At the end of the year 2009, there were three long-term incentive programs in place:

• Stock option program is designed to support the achievement of long-term strategic objectives and to build shareholder value. The number of people in management within Amer Sports who came within the scope of stock options at the end of 2009 was 8 under the 2007 program.

• A share-based incentive plan for key executives was established in 2007. The Amer Sports’ share-based incentive plan is targeted for the company’s key personnel. The plan’s reward was paid in 2008 in part as Amer Sports’ shares and partially in cash. The cash payment covers taxes and tax-related costs arising from the reward. During 2009, there were two new participants in the plan who received the reward and the cash payment. Of the shares, 25% will be transferable as of April 2010, 25% as of April 2011, and 50% as of April 2012. The rewards paid based on this plan corresponded to a maximum value of approximately 400,000 Amer Sports Corporation shares. At the end of the financial year the plan covered 22 people.

• A deferred cash long-term incentive program that seeks to elicit commitment from key executives. The program encourages the achievement of the annual plan. Its result is tied to the three-year trend in shareholder value. At the end of 2009, 92 members in management tasks at subsidiaries came within the scope of the program.