Neste Corporation, Stock Exchange Release, 11 December 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 2021-2023, commences as of the beginning of 2021 and the potential share rewards thereunder will be paid in the spring 2024 provided that the performance targets set by the Board of Directors are achieved. Similarly to earlier plan periods, relative total shareholder return (TSR) of the Company’s share is set as a performance measure in the PSP 2021-2023. In addition to drive Neste strategy and leadership in sustainability, the Board of Directors has set the Company’s Combined Greenhouse Gas (GHG) Impact as a new performance measure. The Combined GHG Impact includes GHG emission reductions achieved with Neste renewable products by customers (GHG Handprint of Renewable Products) and GHG emissions from Neste production (Production GHG Footprint).
Eligible to participate in PSP 2021-2023 are approximately 130 individuals, including the members of Neste's Executive Committee. If the performance targets set for PSP 2021-2023 are fully achieved, the aggregate maximum number of shares to be paid based on this plan is approximately 230 000 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 next individual plan within the RSP structure, RSP 2021-2023, commences as of the beginning of 2021 and the potential share rewards thereunder will be paid in the spring 2024. 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 2021-2023 is 23 000 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.
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 (weekdays from 8:30 a.m. to 4:00 p.m. (EET)).
Neste in brief
Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. We refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. We are the world’s leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. We aim at helping customers to reduce greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons annually by 2030. As a technologically advanced refiner of high-quality oil products with a commitment to reach carbon-neutral production by 2035, we are also introducing renewable and recycled raw materials such as waste plastic as refinery raw materials. We have consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2019, Neste's revenue stood at EUR 15.8 billion, with 82% of the company’s comparable operating profit coming from renewable products. Read more: neste.com