Nokia Company
Inventory Alternate Launch
25 January 2024 at 8:15 EET
Nokia Board of Administrators accredited the Nokia Lengthy-Time period Incentive Plan 2024–2026 and the Worker Share Buy Plan 2024–2026
Espoo, Finland – Nokia Board of Administrators has accredited the brand new share-based long-term incentive plan and an worker share buy plan beneath which awards could also be granted till December 31, 2026.
Lengthy-term Incentive Plan 2024–2026
Nokia seeks to recognise, reward and retain its most gifted workers. The share-based long-term incentive plan intends to successfully contribute to the long-term worth creation and sustainability of the Firm and align the pursuits of the executives and workers with these of Nokia’s shareholders. Nokia’s Lengthy-term Incentive Plan for 2024–2026 (LTI Plan) is a key software which helps these goals. Beneath the LTI Plan the corporate might grant eligible executives and different workers awards within the type of each efficiency shares and restricted shares.
Awards beneath the LTI Plan could also be granted between the date the plan is accredited and December 31, 2026, topic to relevant efficiency metrics in addition to efficiency and/or restriction durations of as much as 36 months relying on the award. Consequently, the restriction durations for the final awards granted beneath the LTI Plan would finish in 2029. Efficiency metrics in addition to weightings and targets for the chosen metrics for efficiency shares are set by the Board of Administrators yearly to make sure they proceed to assist Nokia’s long-term enterprise technique and monetary success. Additional disclosure on annual implementation of the LTI Plan is offered within the Firm’s annual report and web site.
The potential most mixture variety of Nokia shares that could be issued based mostly on awards granted beneath the LTI plan in 2024, 2025 and 2026 is 350 million shares. Till the Nokia shares are delivered, the individuals won’t have any shareholder rights, akin to voting or dividend rights related to the efficiency or restricted shares. If the participant’s employment with Nokia terminates earlier than the vesting date of the award or part of an award, the person just isn’t, as a predominant rule, entitled to settlement based mostly on the plan.
Worker Share Buy Plan 2024–2026
The aim of the Worker Share Buy Plan (ESPP) is to encourage share possession inside the Nokia worker inhabitants, rising engagement and sense of possession within the firm. Beneath the ESPP 2024–2026, topic to the Board commencing annual plan cycles, the eligible workers might elect to contribute from their month-to-month internet wage to buy Nokia shares at market worth on pre-determined dates on a quarterly foundation throughout the relevant plan interval. Nokia would ship one matching share for each two bought shares that the participant nonetheless holds on the finish of relevant plan cycle. As well as, the individuals could also be supplied free shares topic to assembly sure situations associated to participation as decided by the Board.
The utmost variety of shares that may be issued beneath all plan cycles commencing beneath the ESPP in 2024, 2025 and 2026 is 45 million. Individuals have speedy shareholder rights over all shares bought from the market. Till the matching or free Nokia shares are delivered, the individuals won’t have any shareholder rights, akin to voting or dividend rights related to the matching or free shares.
Dilution impact
As at December 31, 2023, the estimated mixture most variety of shares that will be issued beneath Nokia’s excellent fairness applications, assuming the unvested efficiency shares could be delivered at most stage, represented roughly 2.40 per cent of Nokia’s complete variety of shares (excluding the treasury shares owned by Nokia Group). This represents the web variety of shares that will be issued, as soon as relevant estimated taxes are deducted from the gross worth of the awards.
The annual dilution impression of Nokia’s excellent fairness applications, if most efficiency was achieved, along with the web variety of shares that might be issued beneath the brand new LTI Plan and the ESPP on account of awards made in 2024, 2025 and 2026, wouldn’t exceed 5 per cent of Nokia’s present complete variety of shares (excluding the treasury shares owned by Nokia Group).
About Nokia
At Nokia, we create expertise that helps the world act collectively.
As a B2B expertise innovation chief, we’re pioneering networks that sense, assume and act by leveraging our work throughout cell, fastened and cloud networks. As well as, we create worth with mental property and long-term analysis, led by the award-winning Nokia Bell Labs.
Service suppliers, enterprises and companions worldwide belief Nokia to ship safe, dependable and sustainable networks at this time – and work with us to create the digital companies and functions of the longer term.
Inquiries:
Nokia Communications
Cellphone: +358 10 448 4900
E mail: press.companies@nokia.com
Kaisa Antikainen, Communications Supervisor
Nokia
Investor Relations
Cellphone: +358 40 803 4080
E mail: investor.relations@nokia.com
Ahead-looking statements
Sure statements herein that aren’t historic information are forward-looking statements. These forward-looking statements replicate Nokia’s present expectations and views of future developments and embrace statements concerning: A) expectations, plans, advantages or outlook associated to our methods, product launches, progress administration, licenses, sustainability and different ESG targets, operational key efficiency indicators and selections on market exits; B) expectations, plans or advantages associated to future efficiency of our companies (together with the anticipated impression, timing and length of potential international pandemics and the overall or regional macroeconomic situations on our companies, our provide chain and our prospects’ companies) and any future dividends and different distributions of revenue; C) expectations and targets concerning monetary efficiency and outcomes of operations, together with market share, costs, internet gross sales, earnings, margins, money flows, the timing of receivables, working bills, provisions, impairments, taxes, forex alternate charges, hedging, funding funds, inflation, product price reductions, competitiveness, income era in any particular area, and licensing earnings and funds; D) capability to execute, expectations, plans or advantages associated to adjustments in organizational construction and working mannequin; E) impression on income with respect to litigation/renewal discussions; and F) any statements preceded by or together with “proceed”, “imagine”, “commit”, “estimate”, “count on”, “purpose”, “affect”, “will” or comparable expressions. These forward-looking statements are topic to various dangers and uncertainties, lots of that are past our management, which might trigger our precise outcomes to vary materially from such statements. These statements are based mostly on administration’s finest assumptions and beliefs in gentle of the data at the moment out there to them. These forward-looking statements are solely predictions based mostly upon our present expectations and views of future occasions and developments and are topic to dangers and uncertainties which are tough to foretell as a result of they relate to occasions and rely upon circumstances that can happen sooner or later. Elements, together with dangers and uncertainties that might trigger these variations, embrace these dangers and uncertainties laid out in our 2022 annual report on Type 20-F revealed on 2 March 2023 beneath Working and monetary assessment and prospects – Danger components.
