Long Term Incentive Programme (LTIP)
Nordea’s Long Term Incentive Programmes (LTIP) are share-based and the outcome is subject to certain performance conditions. The Board’s main objective with the programmes is to strengthen Nordea’s capability to retain and recruit the best talent for key leadership positions. The aim is further to stimulate the managers and key employees whose efforts have direct impact on Nordea’s results, profitability and value growth, to increased efforts by aligning their interests and perspectives with those of the shareholders.
The participants take direct ownership by allocating Nordea shares to the programmes. For each ordinary Nordea share the participant locks into an LTIP, the participant is allotted one matching share and up to three or four performance shares, conditional upon fulfilment of certain performance conditions during the three year vesting period.
The underlying basic principles of the LTIPs are that the outcome shall be dependent on the creation of long-term shareholder value by fulfilment of Nordea’s long-term financial targets.
It is further required that the participant, with certain exemptions, remains employed within the Nordea Group during the initial three year vesting period and that all Nordea shares locked into an LTIP are kept during this period.
Nordea's first LTIP was introduced in May 2007, targeting up to 400 managers and key employees identified as essential to the future development of the Group. LTIP 2007 has been follwed by annual programmes based on the same principles. LTIP 2010, LTIP 2011 and LTIP 2012 have three-year vesting period instead of two years as the previous programmes and are based on shares free of charge instead of rights to acquire Nordea shares.
More information on Nordea LTIPs is presented in Note G7 in Annual Report 2012 and in Annual Reports of previous years.
The Board of Directors has decided not to propose an LTIP to the AGM 2013.
- LTIP 2012, see Item 18
- LTIP 2011, see Item 18
- LTIP 2010, see Item 18
- LTIP 2009, see Item 16
- LTIP 2008, see Item 18
- LTIP 2007, see Item 20
Updated: March 2013