Wärtsilä Corporation, Stock exchange release, 31 January 2024 at 08:40 EET
Wärtsilä's Board of Directors decided on new share-based incentive plans
The Board of Directors of Wärtsilä Corporation has resolved on the establishment
of a new share-based long-term incentive scheme for the company's management and
selected key employees. The incentive scheme comprises a Performance Share Plan.
The objectives of the share-based long-term incentive scheme are to align the
interests of Wärtsilä's management and key employees with those of the company's
shareholders and, thus, to promote shareholder value creation in the long term,
to commit management and key employees to achieving Wärtsilä's strategic
targets, and the retention of Wärtsilä's key resources.
Performance Share Plan 2024-2026
The Board of Directors of Wärtsilä has resolved on the target group, the amount
of the possible rewards and the performance criteria for the Performance Share
Plan 2024-2026. The potential share reward, which is subject to the achievement
of the set performance criteria, is paid in listed shares of Wärtsilä.
During the performance period 2024-2026, the earning of rewards is based on the
Economic Value Added (EVA) (85% weight) and Sustainability Targets linked to
decarbonisation (15% weight). Wärtsilä's decarbonisation strategy is to become
carbon neutral in own operations, and to have a product portfolio ready for zero
carbon fuels.
The aggregate maximum number of shares payable as a reward based on this first
plan is approximately 2,051,000 shares (gross earning before the withholding of
the applicable payroll tax). The target group of the performance period
2024-2026 consists of approximately 180 key employees, including the President &
CEO and the Board of Management.
Restricted Share Plan 2024-2026
The Board of Directors has also resolved on a Restricted Share Plan 2024-2026 as
a share-based retention plan for individually selected key employees in specific
situations.
The Restricted Share Plan 2024-2026 comprises a retention period with an overall
length of three years, extended to the first half of the fourth year, during
which the company may grant fixed share rewards to individually selected key
employees. The granted share rewards are paid to the selected participants in
three separate share tranches annually during the retention period, unless the
company resolves to pay individual share grants in one instalment. The share
rewards are paid in listed shares of Wärtsilä.
The aggregate maximum number of shares to be paid as a reward based on the plan
is approximately 176,000 shares (gross earning before the withholding of the
applicable payroll tax).
Other terms
The value of the reward payable to participants based on the plans is limited by
a maximum cap, which is linked to a multiplier of the individual's annual gross
base salary.
If the individual's employment with Wärtsilä terminates before the payment of
the reward, the individual is not, as a main rule, entitled to any reward based
on the respective plan.
Wärtsilä applies a share ownership recommendation to the members of the
company's Board of Management. According to this recommendation, each member of
Wärtsilä's Board of Management is expected to retain in his/her ownership at
least half of the shares received under the share-based incentive plans of the
company, until the value of his/her share ownership in the company corresponds
to at least his/her annual gross base salary.
For further information, please contact:
Teija Sarajärvi
Executive Vice President, Human Resources
Puh. +358 10 709 5010
teija.sarajarvi@wartsila.com
For investor information, please contact:
Hanna-Maria Heikkinen
Vice President, Investor Relations
Tel. +358 10 709 1461
hanna-maria.heikkinen@wartsila.com
Wärtsilä in brief
Wärtsilä is a global leader in innovative technologies and lifecycle solutions
for the marine and energy markets. We emphasise innovation in sustainable
technology and services to help our customers continuously improve environmental
and economic performance. Our dedicated and passionate team of 17,800
professionals in more than 280 locations in 79 countries shape the
decarbonisation transformation of our industries across the globe. In 2023,
Wärtsilä's net sales totalled EUR 6.0 billion. Wärtsilä is listed on Nasdaq
Helsinki. www.wartsila.com