The Board of Directors of Neste Oil Corporation has decided to establish a new share-based incentive plan for the Group key personnel.
The plan includes two three-year earning periods, which will start in 2007 and 2010. The rewards will be paid partly in the Company's shares and partly in cash in 2010 and 2013. The maximum amount of the payable reward for each three-year earning period, however, will be a person's accumulated fixed gross annual salary for three years. The proportion to be paid in cash will cover taxes and tax-related costs arising from the reward.
The triggers for paying an incentive according to the approved incentive plan are the Company's comparable operating profit development and the share performance against an international oil industry share index.
The plan prohibits the transfer of the shares within one year from the end of the earning period, i.e. the length of the plan is four years for each share lot. Even after this, the senior management of the Company must own the Company's shares worth their annual gross salary. This obligation to own shares is valid as long as their service or employment in the Group continues.
The Board of Directors will decide in December on the earnings criteria, target group and reward levels for the earning period beginning on 1 January 2007.
Neste Oil Corporation
Chairman of the Board of Directors
Neste Oil Corporation is a refining and marketing company specializing in advanced, clean traffic fuels, with a strategy that prioritizes growing its refining and premium-quality biodiesel businesses. Neste Oil's refineries are located in Porvoo and Naantali in Finland, and have a total refining capacity of approx. 250,000 bbl/d. The company employs around 4,600 people. Neste Oil is listed on the Helsinki Stock Exchange. For further information, see www.nesteoil.com.