Finnair's Board of Directors decided on a new period for the long-term incentive plan for management and experts
Finnair Plc Stock Exchange Release 19 February 2024 at 5:00 p.m. EET
Performance-based incentive plan for management and experts
The Board of Directors of Finnair has, as part of the existing long-term incentive scheme structure, approved a new individual performance share plan period covering the years 2024–2026. Within the plan, the participants have the opportunity to earn Finnair shares as a long-term incentive reward, if the performance targets set by the Board of Directors for the plan are achieved. The participants include the Finnair Executive Board as well as other management and experts. The purpose of the plan is to incentivise the participants to work for increased shareholder value in the long-term, and to increase retention.
The annually commencing performance share plans have three-year performance periods. The potential share rewards will be delivered to the participants in one tranche after the performance period and they are at the participants’ free disposal after delivery. The potential share rewards will be delivered to the participants in the spring 2027.
The members of Finnair’s Executive Board are expected to retain at least fifty per cent of the net shares received based on the arrangement until their share ownership in Finnair corresponds to at least their annual gross base salary.
The maximum combined value of all variable compensation paid to an individual participant in any given year may not exceed hundred and twenty per cent of the participant’s annual gross base salary.
The performance criteria applied to the plan 2024–2026 are earnings per share, free cash flow and CO2 emissions/revenue ton kilometre (CO2/RTK) (fuel efficiency).
If the targets set for the plan for years 2024–2026 are fully achieved, the maximum number of shares to be delivered based on this plan is approximately 118,000,000 shares. This number of shares represents a gross earning, from which the payroll tax is deducted, and the remaining net value is delivered to the participants in shares.
The number of employees eligible to participate in the plan 2024–2026 is approximately 75 persons.
FINNAIR PLC
Further information:
Finnair communications, 358 9 818 4020, comms@finnair.com
Distribution:
NASDAQ OMX Helsinki
Principal media
Finnair is a network airline, specialising in connecting passenger and cargo traffic between Asia, the Middle East, North America and Europe. Finnair is the only airline with year-round direct flights to Lapland. Sustainability is at the heart of everything we do – Finnair intends to reach carbon neutrality latest by the end of 2045. Customers have chosen Finnair as the Best Airline in Northern Europe in the Skytrax Awards for 13 times in a row. Finnair is a member of the oneworld alliance. Finnair Plc’s shares are quoted on the Nasdaq Helsinki stock exchange.