The Board of Directors of Finnair has approved that a new performance period for years 2025-2027 starts within the company's Performance Share Plan.
The Performance Share Plan consists of annually commencing individual performance share plans, each with a three-year performance period. The plan participants can earn Finnair shares as a long-term incentive reward if the performance targets set by the Board of Directors for the plan are achieved. The participants include the Finnair Executive Board, as well as other management and experts. The purpose of the plan is to incentivise the participants to work for increased shareholder value in the long term, and to increase retention.
The performance targets applied to the plan 2025-2027 are earnings per share, free cash flow, CO2 emissions per revenue tonne kilometre (fuel efficiency, CO2/RTK) and employee engagement score. If the targets set for the plan 2025-2027 are fully achieved, the maximum number of shares to be delivered based on this plan is?3,000,000?shares. This number of shares represents a gross earning, from which payroll tax is deducted, and the remaining net value is delivered to the participants in shares. The number of employees eligible to participate in the plan 2025-2027 is approximately 75 persons. The potential share rewards will be delivered to the participants in the spring of 2028.
Restricted Share Plan
The Board of Directors of Finnair has, as part of the long-term incentive scheme structure, decided to establish a Restricted Share Plan.
The aim of the Restricted Share Plan is to function as a complementary share-based incentive tool to combine the objectives of shareholders with those of the persons participating in the plan and to commit the participants to Finnair. The plan offers participants an opportunity to receive a predetermined number of company's shares after a specific restriction period.
The Restricted Share Plan consists of annually commencing individual restricted share plans. The Board of Directors will decide separately on the commencement of each individual plan. Each plan comprises an overall three-year restriction period during which the company may grant fixed share rewards to individually selected key employees. The company may choose to use a shorter restriction period on a case-by-case basis within this overall three-year period. The granted share rewards will be paid after the restriction period. No reward will be paid if the participant's employment or service ends, or a notice of termination is delivered before the reward payment.
The maximum number of shares to be delivered based on the plan for years 2025-2027 is 350,000 shares. This number of shares represents a gross earning, from which payroll tax is deducted, and the remaining net value is delivered to the participants in shares. The potential share rewards from plan 2025-2027 will be delivered to the participants in the spring of 2028.
Other terms related to long-term share-based incentive plans
The members of Finnair's Executive Board are expected to retain at least 50% of the net shares received based on the share-based incentive programs, until their share ownership in Finnair corresponds to at least their annual gross base salary.
The maximum combined value of all variable compensation paid to an individual participant in any given year may not exceed 200% of the participant's annual gross base salary.
FINNAIR PLC
Further information:
Finnair communications, +358 9 818 4020, comms(a)finnair.com
Distribution:
NASDAQ OMX Helsinki
Principal media
Finnair is a network airline, specialising in connecting passenger and cargo traffic between Asia, North America and Europe. Finnair is the only airline with year-round direct flights to Lapland. Customers have chosen Finnair as the Best Airline in Northern Europe in the Skytrax Awards for 15 times in a row. Finnair is a member of the oneworld alliance. Finnair Plc's shares are quoted on Nasdaq Helsinki.
