Neste Oil's Board of Directors decided on a new long-term share-based incentive plan
Neste Oil’s Board of Directors has decided to establish a new long-term share-based incentive plan for the Group’s senior management and nominated key personnel. The aim of the plan is to align the objectives of the company’s owners and key personnel to increase the company’s value and to commit key personnel to the company through an incentive system based on ownership of Neste Oil shares. The new long-term share-based incentive plan complies with the Statement by the Cabinet Committee on Economic Policy on 13 August 2012.
The plan includes three individual share plans, each with a three-year earning period. The share plans will start in 2013, 2014, and 2015. The earning criteria for the 2013-2015 earning period of the first plan will be the Group’s comparable free cash flow and the comparable operating profit of Renewable Fuels.
The potential incentives will be paid partly in the form of company shares and partly in cash in 2016, 2017, and 2018. The combined amount of incentives paid under the long-term incentive program that has now been decided on and the annual short-term incentive program may not exceed 120% of participants’ annual fixed salary in any given year. The proportion to be paid in cash will cover taxes and tax-related costs arising from the incentives.
Participants shall not be entitled to sell or transfer the shares they receive as incentives during a restriction period following the end of the earning period. The length of this period will be three years in respect of the President & CEO and the other members of the Neste Executive Board (NEB), and one year in respect of other participants. President & CEO and the other members of the NEB shall accumulate and, once achieved, maintain a level of share ownership corresponding to their annual fixed salary for as long as they remain a member of the NEB.
If the targets set for the 2013-2015 earning period of the first share plan are met, the estimated aggregate value of shares to be paid will be approximately EUR 3.5 million or approximately 350,000 Neste Oil Corporation shares based on share price as of today. Should an excellent level of performance be achieved, the estimated maximum value of shares is approximately EUR 7 million or approximately 700,000 shares.
The Board has also decided on the remuneration principles for Neste Oil personnel in 2013.
Neste Oil Corporation