FORTUM CORPORATION INVESTOR NEWS 18 DECEMBER 2020 AT 8:45 EET
The Board of Directors of Fortum Corporation has decided to commence the 2021-2023 long-term incentive (LTI) plan for key employees and executives. The 2021-2023 LTI plan is part of Fortum's ongoing LTI programme and follows the same principles as the previous plan.
The performance measures applied to the 2021-2023 LTI plan will be based on the total shareholder return measured relative to the peer group comprising selected European utility and gas companies, as well as a target linked to the reduction of Fortum’s coal-based power generation capacity in line with Fortum’s coal-exit path, with a minimum level requiring exceeding the communicated ambition level. The rewards related to the 2021-2023 LTI plan will be paid in the spring 2024, assuming that the performance targets are achieved.
The 2021-2023 LTI plan will comprise approximately 150 participants, including the members of Fortum Executive Management.
The Board of Directors also decided to commence the 2021-2023 restricted share (RS) plan as a supplement to the LTI programme and reserve shares that potentially will be delivered in spring 2024.
The maximum number of shares that may be delivered as a reward is expected to be 800,000 shares for the 2021-2023 LTI plan and 60,000 shares for the 2021-2023 RS plan.
The objective of the LTI programmes is to support the implementation of the company’s strategy, delivery of sustainable long-term performance, and to align the interests of the executive management and key employees with its shareholders. The programmes comply with the Finnish government ownership guidelines for management remuneration.
For further information regarding the company’s incentive programmes, please see Fortum’s Remuneration Statement: www.fortum.com/governance.
Vice President, Investor Relations and Financial Communications
Måns Holmberg, Manager, Investor Relations & Financial Communications, tel. +358 44 518 1518
Jari Laitinen, Vice President, Compensation and Benefits, tel. +358 40 660 2506