Neste Corporation resolved on performance share plan 2017-2019 details
The Board of Directors of Neste Corporation has decided on target group, allocations, and performance criteria for the Performance Share Plan 2017-2019 under the long-term incentive program established in December 2015. Approximately 100 key persons, including the members of the Neste Executive Board (the NEB), belong to the target group of the PSP 2017-2019.
The potential reward from the performance period 2017-2019 will be based on the Company share’s relative Total Shareholder Return (TSR) and the Group’s cumulative comparable Free Cash Flow (FCF). The rewards to be paid on the basis of the performance period 2016-2018 correspond to the value of an approximate maximum total of 191,000 Neste Corporation shares (including also the proportion to be paid in cash).
The lock-up period for the Performance Share Plan 2017-2019 lasts for 12 months instead of the original 36 months. The lock-up period for the Performance Share Plan 2016-2018 remains unchanged. The lock-up periods begin from a performance period’s reward payment. The change in the lock-up period is based on prevalent market practice. The shares paid as reward may not be transferred during the 12-month lock-up period. As a rule, no reward will be paid, if a key person’s employment or service ends before the reward payment. If a key person’s employment or service ends before the end of a lock-up period, the key person must, as a rule, return the shares paid as reward back to the Company.
The potential reward from the performance period 2017-2019 will be paid partly in Neste shares and partly in cash in 2020. The cash proportion is intended to cover taxes and tax-related costs arising from the reward to a key person. The combined amount of rewards to be paid under the Performance Share Plan and the annual short-term incentive plan may not exceed 120 per cent of the key person’s gross annual fixed salary in any year.
The key persons who are members of the Neste Executive Board must hold all shares given as reward on the basis of the entire Performance Share Plan also after the lock-up periods, until the NEB member’s shareholding in the Company in total equals the value of such member’s gross annual fixed salary. Other key person’s must hold all shares given as Performance Share Plan reward until the total equals half of the value of such key person’s gross annual fixed salary. Such number of shares must be held as long as the key person holds a position as a NEB member or as long as other key person’s employment in a Group Company continues.
Source / More : Neste Corporation
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