Neste Oil's Board of Directors decided on key personnel incentive plan
Neste Oil Corporation, Stock Exchange Release 16 December 2009 at 13.30 pm
The Board of Directors of Neste Oil Corporation has decided to establish a new share-based incentive plan for the Group key personnel. The aim of the plan is to align the objectives of the owners and the key personnel of Neste Oil: e.g. increasing the value of the Company and committing the key personnel to the Company by offering them a competitive reward plan based on holding the Company shares.
The plan includes three three-year earning periods, which will start in 2010, 2011 and 2012. The Board of Directors will decide the earnings criteria and targets to be met as well as the maximum level of the payable reward for each earning period in December preceding the earning period. The earnings criteria for the earning period 2010-2012 are the Sales Volume of Renewable Fuels and Total Shareholder Return of Neste Oil share in relation to Dow Jones Nordic Return Index.
The potential reward will be paid partly in Companys shares and partly in cash in 2013, 2014 and 2015. The maximum level of payable reward may not, during any earning year, exceed the annual gross salary of the year in question. The proportion to be paid in cash will cover taxes and tax-related costs arising from the reward.
The plan prohibits the transfer of the shares within three years from the end of the earning period, i.e. the length of the plan is six years for each share allocation. Even after this, the key person must hold 50% of the shares received on the basis of the plan as long as the value of the shares held by the key person in total corresponds to the key persons annual gross salary. This obligation to own shares is valid as long as the employment or service in the Group continues.
The maximum rewards to be paid on the basis of the earning period 2010-2012 if all the set targets are met will correspond to the approximate value of a maximum total of 850,000 Neste Oil Corporation shares (including also the proportion to be paid in cash).
Neste Oil Corporation
Hanna Maula
Director, Corporate Communications
Further information:
Matti Lievonen, President & CEO, tel. +358 10 458 11
Hannele Jakosuo-Jansson, Senior Vice President, Human Resources, tel. +358 (0)10 458 4688
Neste Oil in brief
Neste Oil Corporation is a refining and marketing company concentrating on low-emission, high-quality traffic fuels. The company is the world's leading supplier of renewable diesel. Neste Oil's refineries are located in Porvoo and Naantali and have a combined crude oil refining capacity of approx. 260,000 barrels a day. The company had net sales of EUR 15 billion in 2008 and employs around 5,200 people. Neste Oil's share is listed on the NASDAQ OMX Helsinki.
Neste Oil has been selected into the Dow Jones Sustainability World Index and awarded 'Best in Class' recognition for its social accountability by Storebrand. The company is also featured in the Ethibel Pioneer Investment Register and included in Innovest's Global 100 list of the world's most sustainable corporations. Further information: www.nesteoil.com.