Nordea launches Long Term Incentive Plan for
2024-2026
Nordea Bank Abp
Stock exchange release - Other information disclosed according to
the rules of the Exchange
2 February 2024 at 19.00 EET
Nordea Bank Abp's
(Nordea) Board of Directors has today decided to continue the
share-based Long Term Incentive Plan (LTIP) launched annually from
2020 for a new performance period covering the financial years
2024-2026. It includes the CEO and nine other members of the Group
Leadership Team (GLT) and approximately 50 senior
leaders.
Nordea wants to ensure that management incentives are
aligned with the shareholders' interests. In support of this, the
Board has decided to continue the share-based LTIP that has been
approved and launched annually from 2020. The LTIP for 2024-2026
continues to cover members of the GLT and approximately 50 senior
leaders and key employees whose efforts have a direct impact on
Nordea's results, profitability, customer vision and long-term
growth.
As part of the LTIP, the members of the GLT and senior
leaders will be allocated conditional shares in 2024. These
conditional shares have a three-year performance period covering
the financial years 2024-2026, with subsequent deferral and
retention periods according to applicable regulations.
The total maximum number of shares that can be granted
to participants as part of the LTIP 2024-2026 is 748,731 Nordea
shares for the CEO and members of the GLT, and a maximum of
1,000,000 Nordea shares for selected senior leaders (approximately
50 participants). In 2027, based on Nordea's performance, the
maximum number of shares or a proportion of these will be granted
to the participants. Once shares are granted, if any, the first
portion of the shares is delivered in 2027, and the rest of the
shares are deferred and delivered annually in five equal portions
during 2028-2032. Each share delivery is subject to a 12-month
retention period, during which the delivered shares cannot be sold
or otherwise disposed of.
The conditional allotment of shares for GLT members in
2024 will remain broadly at the same allocation levels as in
2023.
The estimated aggregate gross value of the LTIP
2024-2026 for the GLT and for senior leaders, calculated on the
basis of the average share price on the Nasdaq Helsinki exchange
yesterday, is approximately EUR 8.4 million.
The LTIP performance requirements have been set so
that the maximum outcome will require achieving exceptional
financial and sustainability performance. The assessment of
performance during the LTIP performance period will be based on the
following performance criteria:
· Total shareholder
return
· Cumulative adjusted
earnings per share (aEPS)
· ESG scorecard: Lending,
investments and internal operations emission reduction, gender
balance, fair treatment and credit profile
No shares will be granted if the participant's
employment terminates before confirmation of the award by the Board
of Directors after the end of the performance period. Share grants
may be reduced in part or in full subject to risk and compliance
adjustments.
The LTIP shares will be delivered to the participants
either through transfer of own shares held by Nordea or by issuing
new shares. Thus, the share delivery may have a marginal dilutive
effect on the Nordea share.
For further information:
Ilkka Ottoila, Head of Investor
Relations, +358 9 5300 7058
Media inquiries, +358 10 416 8023 or
press@nordea.com
The
information provided in this stock exchange release was submitted
for publication, through the agency of the contacts set out above,
at 19.00 EET on 2 February 2024.