Fortum commences the 2023–2025 incentive plan as part of its ongoing long-term incentive programme
FORTUM CORPORATION INVESTOR NEWS 2 MARCH 2023 AT 10:00 EET
The Board of Directors of Fortum Corporation has decided to commence the 2023–2025 long-term incentive (LTI) plan for key employees and executives. The 2023–2025 LTI plan is part of Fortum's ongoing LTI programme and follows the same principles as the previous plan.
The performance measures applied to the 2023–2025 LTI plan will be based on the total shareholder return measured relative to a selected group of European utility companies, as well as an ESG (Environmental, Social, Governance) target linked to emission reduction based on the climate science (SBTi 1.5°C) and related to emissions in Europe, and Fortum’s reputation index development among key stakeholders. The rewards related to the 2023–2025 LTI plan will be paid in the spring 2026, assuming that the performance targets are achieved.
The 2023–2025 LTI plan will comprise an amount of approximately 100 participants, including the members of Fortum Executive Management. Due to the restrictions regarding management remuneration put in place by the Finnish State in the Solidium bridge financing facility, the members of Fortum Executive Management will not be paid any long-term incentives that are accumulated in 2023.
The Board of Directors also decided to commence the 2023–2025 restricted share (RS) plan as a supplement to the LTI programme and reserve shares that potentially will be delivered in spring 2026.
The maximum amount of shares of the plan that may be delivered as a reward is expected to be approximately 900 000 shares for the 2023–2025 LTI plan and 100 000 shares for the 2023–2025 RS plan.
The objective of the LTI programmes is to support the implementation of Fortum’s new strategy, delivery of sustainable long-term performance, and to align the interests of the executive management and key employees with its shareholders. The programmes comply with the Finnish Government ownership guidelines for management remuneration.
For further information regarding the company’s incentive programmes, please see Fortum’s Remuneration Policy and Report: www.fortum.com/about-us/investors/corporate-governance/remuneration
Fortum Corporation
Ingela Ulfves
Vice President, Investor Relations and Financial Communications
Further information:
Nora Hallberg, Manager, Investor Relations & Financial Communications, tel. +358 40 7201775
Jari Laitinen, Vice President, Compensation and Benefits, tel. +358 40 660 2506
Fortum
Fortum is a Nordic energy company. Our purpose is to power a world where people, businesses and nature thrive together. We are one of the cleanest energy producers in Europe and our actions are guided by our ambitious environmental targets. We generate and deliver clean energy reliably and help industries to decarbonise their processes and grow. Our core operations in the Nordics comprise of efficient, CO2-free power generation as well as reliable supply of electricity and district heat to private and business customers. For our ~5 000 employees, we commit to be a safe, and inspiring workplace. Fortum's share is listed on Nasdaq Helsinki. fortum.com
