Elisa establishes a new share-based incentive plan for key employees

ELISA CORPORATION STOCK EXCHANGE RELEASE 31 JANUARY 2024 AT 9:30 AM

The Board of Directors of Elisa Corporation has resolved to establish a new share-based incentive plan for key employees of the group. The purpose of the plan is to align the interests of the company’s shareholders and key employees to increase the company’s value in the long-term, to commit key employees to implement the company's strategy, objectives and long-term interest and to offer them a competitive incentive plan based on earning and accumulating the company´s shares.

The Performance-based Share Plan 2024–2028 consists of three performance periods, covering the financial years 2024–2026, 2025–2027 and 2026–2028 respectively. The Board of Directors will resolve annually on the commencement and details of a performance period.

In the plan, the target group has an opportunity to earn Elisa shares based on performance. The performance criteria of the plan are decided separately for each performance period by the Board of Directors. The potential rewards from the plan will be paid after the end of each performance period.

The potential reward will be paid partly in Elisa shares and partly in cash. The cash proportion of the reward is intended to cover taxes and statutory social security contributions arising from the reward to the key employee. As a rule, no reward will be paid if the key employee’s employment or director contract terminates before the reward payment.

The Executive Board member must hold 50 per cent of the received shares, until the value of the Executive Board member’s total shareholding in Elisa equals to 50 per cent of their annual base salary for the calendar year preceding the payment of the reward. Respectively, the CEO must hold 50 per cent of the net reward shares received from the plan, until the CEO´s shareholding in Elisa equals to 100 per cent of the CEO’s annual base salary of the preceding year. Such number of Elisa shares must be held as long as the membership in the Executive Board or the position as the CEO continues.

The Board of Directors of Elisa Corporation has resolved to establish the performance period 2024–2026 for the Performance-based Shares Plan 2024–2028. The value of the rewards to be paid on the basis of the plan in this earnings period corresponds to a maximum total of 460.000 shares of Elisa, including also the proportion to be paid in cash. The target group in the performance period 2024–2026 consists of approximately 220 key employees, including the members of the Executive Board and the CEO. The potential reward of the Plan from the performance period 2024–2026 will be based on the Group’s Earnings per Share (EPS, weight 60%), on the International Digital services growth (weight 20%), on Employee Engagement (weight 10%) and annual progress in specific key business growth and ESG (climate) targets (weight 10%). 

ELISA CORPORATION

Vesa Sahivirta                    
IR Director
tel. +358 50 520 5555

Distribution:

Nasdaq Helsinki                 
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elisa.com