Finnair Plc Stock Exchange Release 28 July 2025
at 10:30 a.m. EEST
Performance Share Plan
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.