Nordea Bank Abp
Stock exchange release – Other information disclosed according to the rules of the Exchange
31 March 2022 at 18.30 EET
Nordea Bank Abp’s (“Nordea”) Board of Directors has today decided to continue the share-based Long Term Incentive Plan (LTIP) launched in 2020 and 2021 for a new performance period covering the financial years 2022-2024. It includes the CEO and nine other members of the Group Leadership Team (GLT) and a maximum of 50 senior leaders.
Nordea wants to ensure that management incentives are aligned with the shareholders’ interests. In support of this, the Board has decided to continue the share-based LTIP that was approved and implemented in 2020 and in 2021. The LTIP for 2022-2024 continues to cover members of the GLT and a maximum of 50 senior leaders and key employees whose efforts have a direct impact on Nordea’s results, profitability, customer vision and long-term growth as further presented at the recent Capital Markets Day.
As part of the LTIP, the members of the GLT and senior leaders will be allocated conditional shares in 2022. These conditional shares have a three-year performance period covering the financial years 2022-2024, with subsequent deferral and retention periods according to applicable regulations.
The total maximum number of shares that can be granted to participants as part of the LTIP 2022-2024 is 750,000 Nordea shares for the CEO and members of the GLT, and a maximum of 1,000,000 Nordea shares for select senior leaders (maximised at 50 participants). In 2025, based on Nordea’s performance, the maximum number of shares or a proportion of the shares will be granted to the participants. Once shares are granted, if any, the first portion of the shares is delivered in 2025, and the rest of the shares are deferred and delivered annually in five equal portions during 2026-2030. Each share delivery is subject to a 12-month retention period, during which the delivered shares cannot be sold or otherwise disposed of.
The conditional allotment of shares for GLT members in 2022 will remain at the same allocation levels as in 2021.
The estimated aggregate gross value of the LTIP 2022-2024 for the GLT and for senior leaders, calculated on the basis of the average share price on the Nasdaq Helsinki exchange yesterday, is approximately EUR 6.6 million.
The LTIP performance requirements have been set so that the maximum outcome will require achieving exceptional performance from a shareholder perspective. The assessment of performance during the LTIP performance period will be based equally on the following performance criteria:
- Relative Total Shareholder Return (rTSR) measured against selected Nordic peer banks
- Absolute Total Shareholder Return (aTSR)
- Cumulative adjusted Earnings Per Share (aEPS).
No shares will be granted if the participant’s employment terminates before confirmation of the award by the Board of Directors after the end of the performance period. Share grants may be reduced in part or in full subject to risk and compliance adjustments.
The LTIP shares will be delivered to the participants either through transfer of own shares held by Nordea or by issuing new shares. Thus, the share delivery may have a marginal dilutive effect on the Nordea share.
For further information:
Matti Ahokas, Head of Investor Relations, +358 40 575 9178
Group Communication, +358 104 168 023 or press [at] nordea.com
The information provided in this stock exchange release was submitted for publication, through the agency of the contact persons set out above, at 18.30 EET on 31 March 2022.
We are a universal bank with a 200-year history of supporting and growing the Nordic economies – enabling dreams and aspirations for a greater good. Every day, we work to support our customers’ financial development, delivering best-in-class omnichannel customer experiences and driving sustainable change. The Nordea share is listed on the Nasdaq Helsinki, Nasdaq Copenhagen and Nasdaq Stockholm exchanges. Read more about us at nordea.com.