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Long-term incentive plan 2017–2019

Our remuneration principles aim to attract and retain the best talent, motivate key people and align the goals of the company's shareholders and executives to enhance the value of the company

Tieto’s Board of Directors has approved two new share-based incentive plans for key employees of Tieto and its subsidiaries, a Performance Share Plan 2017–2019 and a Restricted Share Plan 2017–2019. 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. Tieto will nominate approximately 150 key employees, including Tieto’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 2020. 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 20172019

The potential reward from the Performance Share Plan 2017-2019 will be based on the relative Total Shareholder Return of Tieto share (TSR), strategic target related to Tieto’s growth and on Tieto’s Earnings per Share (EPS). Performance will be measured during 2017-2019. The rewards to be paid on the basis of the Performance Share Plan 2017-2019 correspond to the value of an approximate maximum of 430 000 Tieto shares, including the proportion to be paid in cash.

Restricted Share Plan 20172019

The reward from the Restricted Share Plan 2017–2017 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 2017-2019. The rewards to be paid on the basis of the Restricted Share Plan 2017-2019 correspond to the value of an approximate maximum of 50 000 Tieto shares, including the proportion to be paid in cash.

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