Nordea continues Long Term Incentive Programme and launches new performance period for 2021-2023
Nordea Bank Abp
Stock exchange release – Other information disclosed according to the rules of the Exchange
31 March 2021 at 18.30 EET
The Board of Directors has decided to continue the share-based Long Term Incentive Programme (LTIP) implemented in 2020 for a new performance period 2021-2023. It includes the CEO and nine other members of the Group Leadership Team (GLT) and a maximum of 50 additional senior leaders.
“The Board wants to continue the share-based LTIP that was approved and implemented in 2020 to further ensure that our top management and senior leaders are guided by and tied to our financial and long-term targets and value creation for our shareholders. The Board has therefore decided to expand the LTIP to also cover a maximum of 50 senior leaders and key employees whose efforts have a direct impact on Nordea’s results, profitability, customer vision and long-term growth. This is in alignment with our ambitions when the LTIP was launched last year”, says Torbjörn Magnusson, Chair of the Board of Directors of Nordea.
The LTIP has a three-year performance period from 2021-2023 and deferral and retention periods according to regulations.
The total maximum number of shares that can be granted under the LTIP is 750,000 Nordea shares for the CEO and members of the GLT, and a maximum of 1,200,000 Nordea shares for select senior leaders (maximised at 50 participants), to be distributed conditionally in 2021. In 2024, based on Nordea’s performance from a shareholder perspective, the maximum number of shares or a proportion of the shares will be granted to the participants. The potential grant is delivered so that the first portion of the shares is delivered in 2024, and the rest of the shares are deferred and delivered annually in five equal portions during 2025-2029. Each share delivery is subject to a 12-month retention period.
The conditional allotment of shares for GLT members in 2021 will remain at similar allocation levels as in 2020.
The estimated aggregate gross value of the LTIP 2021-2023 for the GLT and for senior leaders, calculated on the basis of the average share price on the Nasdaq Helsinki exchange of the last trading day preceding the date hereof, is approximately EUR 6.8 million.
The LTIP performance requirements have been set so that the maximum outcome will require achieving exceptional performance from a shareholder perspective. The assessment of performance during the LTIP performance period will be based equally on the following performance criteria:
- Relative Total Shareholder Return (rTSR) measured against selected Nordic and European peer banks.
- Absolute Total Shareholder Return (Absolute TSR).
- Absolute cumulative Earnings Per Share (Absolute EPS).
No shares will be granted if the participant’s employment terminates before confirmation of the award by the Board of Directors after the end of the performance period. Share grants may be reduced in part or in full subject to risk and compliance adjustments.
The LTIP shares will be delivered to the participants either through transfer of own shares held by Nordea or by issuing new shares. Thus, the share delivery may have a marginal dilutive effect on the Nordea share.
For further information:
Matti Ahokas, Head of Investor Relations, +358 9 5300 8011
Group Communication, +358 10 416 8023 or press@nordea.com
The information provided in this stock exchange release was submitted for publication, through the agency of the contact persons set out above, at 18.30 EET on 31 March 2021.
Nordea is a leading Nordic universal bank. We are helping our customers realise their dreams and aspirations – and we have done that for 200 years. We want to make a real difference for our customers and the communities where we operate – by being a strong and personal financial partner. The Nordea share is listed on the Nasdaq Helsinki, Nasdaq Copenhagen and Nasdaq Stockholm exchanges. Read more about us on nordea.com.
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