Stock Exchange Release
12 December 2017 at 3.45 p.m. (EET)
The Board of Directors of Neste Corporation resolved on Performance Share Plan 2018-2020 details
The Board of Directors of Neste Corporation has decided on target group, allocations, and performance criteria for the PSP 2018-2020. Approximately 130 key persons, including the members of the Neste Executive Board (the NEB), belong to the target group of the PSP 2018-2020.
The potential reward from the performance period 2018-2020 will be based on the Company share's relative Total Shareholder Return (TSR) and the Group's cumulative comparable Free Cash Flow. The rewards to be paid on the basis of the performance period 2018-2020 correspond to the value of an approximate maximum total of 176,000 Neste Corporation shares (including also the proportion to be paid in cash).
The potential reward from the performance period 2018-2020 will be paid partly in Neste shares and partly in cash in 2021. The cash proportion is intended to cover taxes and tax-related costs arising from the reward to a key person. The shares paid as reward may not be transferred during the 12-month lock-up period. As a rule, no reward will be paid, if a key person's employment or service ends before the reward payment. If a key person's employment or service ends before the end of a lock-up period, the key person must, as a rule, return the shares paid as reward back to the Company.
The combined amount of rewards to be paid under the LTI and the annual short-term incentive plan may not exceed 120 per cent of the key person's gross annual fixed salary in any year.
The key persons must hold all shares given as reward on the basis of the entire LTI also after the lock-up periods, until the NEB member's shareholding in the Company in total equals the value of such member's gross annual fixed salary, and other key person's shareholding in the Company in total equals half of the value of such key person's gross annual fixed salary. Such number of shares must be held as long as the key person holds a position as a NEB member or as long as other key person's employment in a Group Company continues.
Chair of the Board
Jorma Eloranta, Chair of the Board, Tel. +358 10 458 4484
Hannele Jakosuo-Jansson, Senior Vice President, Human Resources and Safety, Tel. +358 10 458 4688
Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates sustainable choices for the needs of transport, businesses and consumers. Our global range of products and services allows customers to reduce their carbon footprint by combining high-quality renewable products and oil products to tailor-made service solutions. We are the world's largest producer of renewable diesel refined from waste and residues, and we are also bringing renewable solutions to the aviation and plastics industries. We want to be a reliable partner, whose expertise, R&D and sustainable practices are widely respected. In 2016, Neste's net sales stood at EUR 11.7 billion, and we were on the Global 100 list of the 100 most sustainable companies in the world. Read more: neste.com