Nokia Board of Directors approved the Nokia Long-Term Incentive
Plan 2024–2026 and the Employee Share Purchase Plan 2024–2026
Nokia CorporationStock Exchange Release25 January 2024 at 8:15
EET
Nokia Board of Directors approved the Nokia Long-Term
Incentive Plan 2024–2026 and the Employee Share Purchase Plan
2024–2026
Espoo, Finland – Nokia Board of Directors has approved the new
share-based long-term incentive plan and an employee share purchase
plan under which awards may be granted until December 31, 2026.
Long-term Incentive Plan
2024–2026
Nokia seeks to recognise, reward and retain its most talented
employees. The share-based long-term incentive plan intends to
effectively contribute to the long-term value creation and
sustainability of the Company and align the interests of the
executives and employees with those of Nokia’s shareholders.
Nokia’s Long-term Incentive Plan for 2024–2026 (LTI Plan) is a key
tool which supports these objectives. Under the LTI Plan the
company may grant eligible executives and other employees awards in
the form of both performance shares and restricted shares.
Awards under the LTI Plan may be granted between the date the
plan is approved and December 31, 2026, subject to applicable
performance metrics as well as performance and/or restriction
periods of up to 36 months depending on the award. Consequently,
the restriction periods for the last awards granted under the LTI
Plan would end in 2029. Performance metrics as well as weightings
and targets for the selected metrics for performance shares are set
by the Board of Directors annually to ensure they continue to
support Nokia’s long-term business strategy and financial success.
Further disclosure on annual implementation of the LTI Plan is
provided in the Company’s annual report and website.
The potential maximum aggregate number of Nokia shares that may
be issued based on awards granted under the LTI plan in 2024, 2025
and 2026 is 350 million shares. Until the Nokia shares are
delivered, the participants will not have any shareholder rights,
such as voting or dividend rights associated with the performance
or restricted shares. If the participant’s employment with Nokia
terminates before the vesting date of the award or a part of an
award, the individual is not, as a main rule, entitled to
settlement based on the plan.
Employee Share Purchase Plan
2024–2026
The purpose of the Employee Share Purchase Plan (ESPP) is to
encourage share ownership within the Nokia employee population,
increasing engagement and sense of ownership in the company. Under
the ESPP 2024–2026, subject to the Board commencing annual plan
cycles, the eligible employees may elect to make contributions from
their monthly net salary to purchase Nokia shares at market value
on pre-determined dates on a quarterly basis during the applicable
plan period. Nokia would deliver one matching share for every two
purchased shares that the participant still holds at the end of
applicable plan cycle. In addition, the participants may be offered
free shares subject to meeting certain conditions related to
participation as determined by the Board.
The maximum number of shares that can be issued under all plan
cycles commencing under the ESPP in 2024, 2025 and 2026 is 45
million. Participants have immediate shareholder rights over all
shares purchased from the market. Until the matching or free Nokia
shares are delivered, the participants will not have any
shareholder rights, such as voting or dividend rights associated
with the matching or free shares.
Dilution effect
As at December 31, 2023, the estimated aggregate maximum number
of shares that would be issued under Nokia’s outstanding equity
programs, assuming the unvested performance shares would be
delivered at maximum level, represented approximately 2.40 per cent
of Nokia's total number of shares (excluding the treasury shares
owned by Nokia Group). This represents the net number of shares
that would be issued, once applicable estimated taxes are deducted
from the gross value of the awards.
The annual dilution impact of Nokia’s outstanding equity
programs, if maximum performance was achieved, in addition to the
net number of shares that could be issued under the new LTI Plan
and the ESPP as a result of awards made in 2024, 2025 and 2026,
would not exceed 5 per cent of Nokia’s current total number of
shares (excluding the treasury shares owned by Nokia Group).
About Nokia
At Nokia, we create technology that helps the world act
together.
As a B2B technology innovation leader, we are pioneering
networks that sense, think and act by leveraging our work across
mobile, fixed and cloud networks. In addition, we create value with
intellectual property and long-term research, led by the
award-winning Nokia Bell Labs.
Service providers, enterprises and partners worldwide trust
Nokia to deliver secure, reliable and sustainable networks today –
and work with us to create the digital services and applications of
the future.
Inquiries:
Nokia CommunicationsPhone: +358 10 448 4900Email:
press.services@nokia.comKaisa Antikainen, Communications
Manager
NokiaInvestor RelationsPhone: +358 40 803 4080Email:
investor.relations@nokia.com
Forward-looking statements
Certain statements herein that are not historical facts are
forward-looking statements. These forward-looking statements
reflect Nokia's current expectations and views of future
developments and include statements regarding: A) expectations,
plans, benefits or outlook related to our strategies, product
launches, growth management, licenses, sustainability and other ESG
targets, operational key performance indicators and decisions on
market exits; B) expectations, plans or benefits related to future
performance of our businesses (including the expected impact,
timing and duration of potential global pandemics and the general
or regional macroeconomic conditions on our businesses, our supply
chain and our customers’ businesses) and any future dividends and
other distributions of profit; C) expectations and targets
regarding financial performance and results of operations,
including market share, prices, net sales, income, margins, cash
flows, the timing of receivables, operating expenses, provisions,
impairments, taxes, currency exchange rates, hedging, investment
funds, inflation, product cost reductions, competitiveness, revenue
generation in any specific region, and licensing income and
payments; D) ability to execute, expectations, plans or benefits
related to changes in organizational structure and operating model;
E) impact on revenue with respect to litigation/renewal
discussions; and F) any statements preceded by or including
"continue", “believe”, “commit”, “estimate”, “expect”, “aim”,
“influence”, "will” or similar expressions. These forward-looking
statements are subject to a number of risks and uncertainties, many
of which are beyond our control, which could cause our actual
results to differ materially from such statements. These statements
are based on management’s best assumptions and beliefs in light of
the information currently available to them. These forward-looking
statements are only predictions based upon our current expectations
and views of future events and developments and are subject to
risks and uncertainties that are difficult to predict because they
relate to events and depend on circumstances that will occur in the
future. Factors, including risks and uncertainties that could cause
these differences, include those risks and uncertainties specified
in our 2022 annual report on Form 20-F published on 2 March 2023
under Operating and financial review and prospects – Risk
factors.
Nokia (TG:NOA3)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Nokia (TG:NOA3)
Historical Stock Chart
Von Mai 2023 bis Mai 2024