Stora Enso resolved on two new long-term incentive plans for key employees
STORA ENSO OYJ STOCK EXCHANGE RELEASE 1 February 2024 at 8:29 EET
The Board of Directors of Stora Enso Oyj has resolved to establish two new share-based incentive plans for the key employees of the Group and its subsidiaries. Stora Enso’s goal is to offer remuneration that motivates, encourages, attracts, and retains top-tier employees. The Group carefully aligns remuneration elements with its strategy and long-term financial interests.
The purpose of the plans is to align the key employees’ interests with those of the shareholders to increase the Company’s value in the long term, as well as to retain the key employees and offer them competitive share-based incentive schemes. The total combined target group for both plans consist of approximately 300 employees and an approximate maximum of 1.6 million Stora Enso R shares as potential rewards, including the proportion to be paid in cash. The cash proportion is intended to cover taxes and statutory social security contributions arising from the reward to the recipient.
Performance Share Plan 2024–2026
The Performance Share Plan 2024–2026 consists of one performance period, covering the financial years 2024–2026.
In the plan, the target group has an opportunity to be rewarded Stora Enso Oyj shares based on performance. The performance measures of the plan are earnings per share (EPS), total shareholder return (TSR), CO2 emission reduction, and gender diversity. The potential rewards from the plan will be allocated after the end of the vesting period. As a rule, no reward will be paid if the participant’s employment or service terminates before the end of the performance period.
The target group consists of key individuals, including the members of the Group Leadership Team (excluding the President and CEO). In connection with the appointment of the new President and CEO in September 2023, the Board decided on a CEO Performance Share Plan. The details of the plan were communicated on 25 October 2023.
Upon reward payment, the reward amount may be decreased if the Company’s share price is above the reward cap level determined by the Board of Directors.
The Company recommends and expects the members of the Group Leadership Team to hold the Company’s shares at a value corresponding to the participant’s annual gross salary as long as the membership in the Group Leadership Team continues.
Restricted Share Unit Plan 2024–2026
The Restricted Share Unit Plan 2024–2026 is directed to key employees of the Group. The plan consists of one plan period which ends on 31 December 2026. The rewards from the plan will be paid after the end of the plan period. As a rule, no reward will be paid if the participant’s employment or service terminates before the end of the plan period.
Stora Enso Oyj
Board of Directors
For further information, please contact:
Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691
Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials and wooden construction, and one of the largest private forest owners in the world. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has approximately 21,000 employees and our sales in 2022 were EUR 11.7 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded on OTC Markets in the USA as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF). storaenso.com/investors
For further information, please contact:
Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691