TietoEVRY’s Board of Directors has approved two new share-based incentive plans for key employees of TietoEVRY and its subsidiaries, a Performance Share Plan 2020–2022 and a Restricted Share Plan 2020–2022. The aim of the plans is to align the objectives of shareholders and key employees in order to increase the value of the company in the long term. TietoEVRY will nominate approximately 350 key employees, including TietoEVRY’s Group Leadership, to the plans.
The potential rewards from these new incentive plans will be paid partly in the company’s shares and partly in cash in 2023. The cash proportion is intended to cover taxes and tax-related costs arising from the reward. As a rule, no reward will be paid, if a participant´s employment or service ends before the reward payment. The Board of Directors anticipates that share rewards to be delivered to the participants under the plan will consist of shares to be acquired from the market. Thus, no new shares will be issued in connection with the plan and, therefore, the incentive plan will have no dilutive effect.
Performance Share Plan 2020–2022
The potential reward from the Performance Share Plan 2020–2022 will be based on the relative Total Shareholder Return of TietoEVRY share (TSR) and on TietoEVRY’s Earnings per Share (EPS). Performance will be measured during 2020–2022. The rewards to be paid on the basis of the Performance Share Plan 2020–2022 correspond to the value of an approximate maximum of 631 000 TietoEVRY shares, including the proportion to be paid in cash.
Restricted Share Plan 2020–2022
The reward from the Restricted Share Plan 2020–2022 will be based on a valid employment or director agreement of a key employee upon the reward payment. The reward will be paid after the end of a three-year vesting period 2020–2022. The rewards to be paid on the basis of the Restricted Share Plan 2020–2022 correspond to the value of an approximate maximum of 299 000 TietoEVRY shares, including the proportion to be paid in cash.