December 17, 2014
Finnair Board of Directors approves performance share plan for 2015-2017
Finnair Board of Directors has approved as a part of existing long-term incentive arrangement a performance share plan, covering years 2015–2017, for the key personnel of the Finnair Group. The share plan is a part of Finnair’s long-term share-based incentive arrangement that Finnair Board of Directors approved in 2013, and which consists of annually commencing individual plans. The purpose of the share plan is to encourage the management to work to increase long-term shareholder value and also to commit the management to the company. 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 are achieved. The performance criteria applied to the 2015–2017 plan is ROCE (Return on Capital Employed) and TSR (total shareholder return). The number of employees eligible to participate in the plan is approximately 60 persons. If the targets set for the plan for years 2015–2017 are met, the estimated total value of the shares to be paid on the basis of this plan would be €1.6m, corresponding to approximately 630,000 Finnair shares based on current share price (gross before the payroll tax withholding). If the maximum targets are met, the estimated total value of shares to be paid would be approximately €3.2m corresponding to approximately 1,270,000 Finnair shares (gross before the payroll tax withholding). The potential reward shares will be delivered to members of Finnair’s Executive Board in three share tranches and for other participants in two tranches during the three or two years following the performance period, i.e. in years 2018–2020. The maximum value of shares delivered to an individual participant based on the share plan in any given year may not exceed 60 % of the employee’s annual base salary.