Fortum is launching a new Performance Share Arrangement for key personnel in the Group. The potential reward under the Performance Share Arrangement will be based on the performance of the Group, its business units and the individual manager as well as appreciation of the Fortum share. At this stage the new arrangement concerns some 190 managers.
The Arrangement consists of annual Performance Share Plans. The term of the individual Plan is six years. Each individual Plan consists of two consecutive periods of three years each, (the earning period and the restriction period, respectively). The shares under the Plan will be acquired and delivered to the participants at the end of the restriction period. Based on the Arrangement, shares will be delivered from 2008 onwards, provided that the person is still employed by Fortum.
Fortum estimates that 0,1 to 0,3 per cent of the outstanding Fortum shares i.e. 1,000,000 to 2,500,000 shares will be allocated under each individual Plan. The shares will be bought from market and thus there will be no dilution effect.
This arrangement will replace other possible long term incentive schemes for top management.
For further information, please contact:
Mikael Frisk, Senior Vice President, Corporate Human Resources, + 358 10 452 4111