Neste's Board of Directors decided on a new plan period within the share-based long-term incentive scheme for key employees
Neste Corporation, Stock Exchange Release, 7 February 2024 at 4.45 p.m. (EET)
The Board of Directors of Neste Corporation has approved the commencement of a new plan period within the share-based long-term incentive scheme for Neste's key employees. The scheme comprises a Performance Share Plan (also "PSP") targeted to Neste's management and selected key employees and a Restricted Share Plan (also "RSP") which serves as a complementary structure for individual retention and recognition and for other specific situations.
Neste originally announced the establishment of the long-term incentive scheme on 10 February 2022.
Performance Share Plan (PSP) 2024-2026
The next individual plan within the PSP structure, PSP 2024-2026, commences as of the beginning of 2024. The rewards potentially earned thereunder will be paid in listed shares of Neste during H1 2027. The payment of the rewards is conditional on the achievement of the performance targets which the Board of Directors has set for the plan.
The performance measures applied to the plan are the relative total shareholder return of Neste relative to the STOXX Europe 600 index and Combined Greenhouse Gas Impact.
Eligible for participation in PSP 2024-2026 are approximately 150 individuals, including the members of Neste Executive Committee.
If the performance targets set for PSP 2024-2026 are fully achieved, the aggregate maximum number of shares to be paid based on this plan is approximately 503,300 shares (referring to gross earning, from which the applicable payroll tax is withheld, and the remaining net value is paid to the participants in shares).
The estimated aggregate gross value of this Plan, based on the current value of the share of Neste, is approximately EUR 16.95 million. The materialized value of the Plan may deviate from this estimate as a result of share price development and the degree to which the performance targets set for the Plan are achieved.
Restricted Share Plan (RSP) 2024-2026
The next individual plan within the RSP structure, RSP 2024-2026, commences as of the beginning of 2024 and the potential share rewards thereunder will be paid in listed shares of Neste during H1 2027 at the latest.
The aggregate maximum number of shares to be paid based on RSP 2024-2026 is 50,330 shares (referring to gross earning, from which the applicable payroll tax is withheld, and the remaining net value is paid to the participants in shares).
The estimated aggregate gross value of this Plan, based on the current value of the share of Neste, is approximately EUR 1.7 million. The materialized value of the Plan may deviate from this estimate as a result of share price development and the amount of share grants made based on the Plan.
Other terms
Neste applies a share ownership policy to the members of Neste Executive Committee. According to this policy each member of Neste Executive Committee is expected to retain in his/her ownership at least half of the shares received under the share-based incentive programs of the company until the value of his/her share ownership in Neste corresponds to at least his/her annual gross base salary.
Neste Corporation
Board of Directors
Further information:
Matti Kähkönen, Chair of the Board of Directors, Neste
Please contact Neste's media service, tel. +358 800 94025 / media@neste.com (weekdays from 8.30 a.m. to 4.00 p.m. EET). Please subscribe to Neste’s releases at https://www.neste.com/for-media/releases-and-news/subscribe.
Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. The company refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials.
As the world’s leading producer of sustainable aviation fuel and renewable diesel and a forerunner in developing renewable and circular feedstock solutions for polymers and chemicals, Neste helps its customers to reduce their greenhouse gas emissions by at least 20 million tons annually by 2030.
The company’s ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe by 2030. Neste is committed to reaching carbon-neutral production by 2035, and will reduce the carbon emission intensity of sold products by 50% by 2040. Neste has also set high standards for biodiversity, human rights and the supply chain. The company has consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2022, Neste's revenue stood at EUR 25.7 billion. Read more: neste.com