kannustinosuudet

Kannustinosuudet is a Finnish term that translates to "incentive shares" or "performance shares" in English. It refers to a type of employee incentive plan where shares of a company are awarded to employees based on the achievement of specific performance targets. These targets can be financial, such as increased profitability or revenue, or operational, such as improved customer satisfaction or market share. The aim of kannustinosuudet is to align the interests of employees with those of the company's shareholders and to motivate employees to work towards achieving strategic goals.

The vesting of these shares typically occurs over a period of time, often several years, and is contingent on the continued employment of the individual and the fulfillment of the predefined performance criteria. This encourages long-term commitment and sustained high performance. The specific structure and conditions of kannustinosuudet plans can vary significantly between companies, depending on their industry, size, and strategic objectives. They are a common tool used by publicly traded companies and larger private firms to attract, retain, and motivate key talent. The design of these plans requires careful consideration to ensure they are perceived as fair, achievable, and genuinely motivating by the employees.