Neste’s Board of Directors decided on a new plan period within the share-based long-term incentive scheme for key employees
Neste Corporation Stock Exchange Release 6 February 2020 at 5.15 p.m. (EET)
The Board of Directors of Neste Corporation has approved the commencement of a new plan period within the share-based long-term incentive scheme for Neste’s key employees. The scheme comprises a Performance Share Plan (also “PSP”) targeted to Neste’s management and selected key employees and a Restricted Share Plan (also “RSP”) which serves as a complementary structure for specific situations.
Neste originally announced the establishment of the long-term incentive scheme on 11 December 2018.
The next individual plan within the PSP structure, PSP 2020‒2022, commences as of the beginning of 2020 and the potential share rewards thereunder will be paid in shares of Neste in the spring 2023 provided that the performance targets set by the Board of Directors are achieved. The performance measure based on which the potential share reward under PSP 2020‒2022 will be paid is the relative total shareholder return of the Company’s share.
Eligible to participate in PSP 2020‒2022 are approximately 130 individuals, including the members of Neste’s Executive Committee. If the performance targets set for PSP 2020‒2022 are fully achieved, the aggregate maximum number of shares to be paid based on this plan is approximately 317,680 shares. This number of shares represents a gross earning, from which the applicable payroll tax is withheld and the remaining net value is paid to the participants in shares.
The estimated aggregate gross value of PSP 2020‒2022, based on the current value of Neste’s share, is approximately EUR 11 million.
The next individual plan within the RSP structure, RSP 2020‒2022, commences as of the beginning of 2020 and the potential share rewards thereunder will be paid in shares of Neste in the spring 2023. The purpose of the Restricted Share Plan is to serve as a complementary long-term retention tool for individually selected key employees of Neste in specific situations.
The aggregate maximum number of shares to be paid based on RSP 2020‒2022 is 32,000 shares. This number of shares represents a gross earning, from which the applicable payroll tax is withheld and the remaining net value is paid to the participants in shares.
The estimated aggregate gross value of RSP 2020‒2022, based on the current value of Neste’s share, is approximately EUR 1 million.
Neste applies a share ownership policy to the members of Neste’s Executive Committee. According to this policy each member of Neste’s Executive Committee is expected to retain in his/her ownership at least half of the shares received under the share-based incentive programs of the company until the value of his/her share ownership in Neste corresponds to at least his/her annual gross base salary.
Board of Directors
For more information: Hannele Jakosuo-Jansson, Senior Vice President, Human Resources, HSSEQ and Procurement. Please contact Neste’s media service, tel. +358 50 458 5076 / email@example.com (open on weekdays from 8.30 a.m. to 4.00 p.m. EET)
Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates sustainable solutions for transport, business, and consumer needs. Our wide range of renewable products enable our customers to reduce climate emissions. We are the world's largest producer of renewable diesel refined from waste and residues, introducing renewable solutions also to the aviation and plastics industries. We are also a technologically advanced refiner of high-quality oil products. We want to be a reliable partner with widely valued expertise, research, and sustainable operations. In 2018, Neste's revenue stood at EUR 14.9 billion. In 2020, Neste placed 3rd on the Global 100 list of the most sustainable companies in the world. Read more: neste.com