Mandatum plc, Stock exchange release, 12 March 2025 at 1.30 p.m. EET
The Board of Directors of Mandatum has decided to continue the long-term performance-based share incentive scheme established in 2024, covering the Group Management Team and selected key employees as well as the restricted long-term share incentive scheme also established in 2024. In this context, the Board has decided to establish new share plans within the schemes for the financial years 2025-2027.
Performance-based incentive scheme
The Board of Directors of Mandatum plc has decided to continue the performance-based long-term incentive scheme (the Performance Share Plan) established in March 2024 with a new plan which covers financial years 2025-2027. The Performance Share Plan scheme covers the Group Management Team (including the Group CEO) and selected key employees. The purpose of the long-term incentive scheme is to align the objectives of the shareholders and key employees in order to increase the company's shareholder value in the long term, to commit the key employees to implementing the company's strategy and to reward from excellent performance.
The Performance Share Plan scheme consists of annually commencing individual share plans, each of which includes a three-year performance period and a potential share reward to be paid thereafter, taking into account any deferral and/or transfer restriction of rewards due to regulations applicable to Mandatum Group. The commencement of each individual plan within the Performance Share Plan scheme is subject to a separate decision by Mandatum plc's Board of Directors. The first plan of the Performance Share Plan scheme covers financial years 2024-2026. Mandatum plc originally announced the establishment of the share-based long-term incentive scheme on 19 March 2024.
The payment of the reward based on the plans is conditional on the achievement of the performance targets set by the Board of Directors for the respective plan. The performance measures for the plan 2025-2027 based on which the potential share rewards based on the plan will be paid are the absolute total shareholder return of the company's share ("Absolute TSR"), a profitability related measure (performance of Mandatum's capital light business) and a selected sustainability target. The second plan of the Performance Share Plan scheme covers financial years 2025-2027 and the target group of the plan covers approximately 49 employees.
The rewards potentially earned based on the incentive plans will be paid in Mandatum plc's shares. Mandatum plc is, however, entitled to pay the reward fully in cash in certain situations. If the employment or director contract ends before the reward payment, as a rule no reward will be paid. If all performance targets set for the performance period 2025-2027 are achieved in full, the aggregate maximum number of shares to be paid based on this respective plan is 1,936,000 Mandatum plc shares (referring to a gross amount of rewards from which the applicable payroll tax is withheld before share delivery to the participants). The estimated aggregate gross value of this plan, based on the current value of the share of Mandatum plc, is approximately EUR 10.5 million. The materialized value of the plan may deviate from this estimate as a result of share price development and the degree to which the performance targets set for the plan are achieved.
Restricted incentive scheme
In March 2024 the Board of Directors established also a restricted incentive scheme (the Restricted Share Plan) which is intended to be used as a complementary share-based incentive and commitment program in specific situations, such as in case of new recruitments.
The Restricted Share Plan scheme consists of annually commencing individual restricted share plans. Each plan includes a restriction period, which covers three calendar years in total, during which the company may grant fixed share rewards to individually selected key employees. The commencement of each individual plan within the Restricted Share Plan scheme is subject to a separate decision by Mandatum plc's Board of Directors. The first plan within the Restricted Share Plan scheme covers the financial years 2024-2026. Mandatum plc originally announced the establishment of the Restricted Share Plan scheme on 19 March 2024.
The Board of Directors of Mandatum plc has on 12 March 2025 decided to establish a new plan within the Restricted Share Plan. The share rewards based on the plan will be paid to the participants in Mandatum plc shares. A prerequisite for the payment of the reward is that the employee's employment or director contract still continues at the time the reward is paid. The aggregate maximum number of shares to be paid based on the second plan of the Restricted Share Plan scheme is 194,000 Mandatum plc shares (referring to a gross amount of rewards, from which the applicable payroll tax is withheld before share delivery to the participants). The estimated aggregate gross value of this plan, based on the current value of the share of Mandatum plc, is approximately EUR 1.1 million. The materialized value of the plan may deviate from this estimate as a result of share price development and the amount of share grants made based on the plan.
Mandatum plc applies a share ownership recommendation to the members of the Group Management Team (including the Group CEO), according to which each member of the Group Management Team is expected to retain in his/her ownership at least half of the shares received under the company's share-based incentive plans until the value of his/her shareholding in the company corresponds to at least his/her gross annual base salary.
The value of the rewards to be paid under the plans described above is limited by a pay cap linked to share price development.
Additional information:
Investors
Lotta Borgström
VP, Investor Relations
Tel. +358 50 022 1027
lotta.borgstrom[a]mandatum.fi
Media
Niina Riihelä
SVP, Communications, brand and sustainability
Tel. +358 40 728 1548
niina.riihela[a]mandatum.fi
Mandatum in brief
Mandatum is a major financial services provider that combines expertise in wealth management and life insurance. Mandatum offers clients a wide array of services covering asset and wealth management, savings and investment, compensation and rewards as well as pension plans and personal risk insurance. Mandatum offers services to corporate, retail, institutional and wealth management clients. At the centre of Mandatum's success are highly skilled personnel, a strong brand as well as a proven investment track record. mandatum.fi/en/group
Distribution:
Nasdaq Helsinki
Financial Supervisory Authority
Key media
www.mandatum.fi
