#Finland #Helsinki #Stora Enso #Oyj #Incentive Plans

Stora Enso Unveils New Incentive Plans for Key Employees

Stora Enso Oyj has recently announced the establishment of two innovative long-term incentive plans designed to motivate its key employees across the Group and its subsidiaries. This strategic move aims to align the interests of these pivotal personnel with the shareholders, thereby enhancing the company's value over the long run.

Goals Behind the New Plans

The primary objective of these incentive plans is to attract, motivate, and retain top-tier talent within the organization. Stora Enso recognizes that a well-structured remuneration package is essential for maintaining a competitive edge in today’s challenging market. As such, the newly proposed plans are an integral part of Stora Enso's broader strategy to ensure long-term financial success.

The combined target group for both plans consists of approximately 300 employees, with a maximum plan opportunity set at €20 million at the time of grant. The rewards under these plans will be offered in two formats: Stora Enso R shares and cash. The cash component is primarily intended to help recipients cover applicable taxes and statutory social security contributions tied to their rewards.

Details of the Performance Share Plan 2025–2027

The newly introduced Performance Share Plan covers a performance period from 2025 to 2027. Eligible participants, including the CEO and other senior members of the leadership team, have the potential to earn Stora Enso shares based on specific performance metrics.

The criteria for this plan include:

• - Earnings Per Share (EPS)
• - Total Shareholder Return (TSR)
• - CO2 Emission Reduction
• - Gender Balance in Managerial Positions

These performance measures are vital for assessing the company’s progress in key areas that align with both financial and sustainability goals. Upon completion of the vesting period, rewards will be allocated, but notably, if an employee's service terminates before this period, no reward will be disbursed.

Additionally, when reward payments are processed, the total amount may be adjusted downwards if the company’s shares exceed a predefined cap level set by the Board of Directors. The organization also emphasizes a culture of ownership, recommending that leadership team members hold company shares at a value equivalent to their gross salary while they remain in their roles.

Insights Into the Restricted Share Unit Plan 2025–2027

Complementing the Performance Share Plan is the Restricted Share Unit Plan, which is also focused on key employees of Stora Enso and spans a plan period concluding on December 31, 2027. Similar to its counterpart, rewards from this plan will be distributed post-evaluation, with a strict policy where no rewards are granted if employment ends prematurely.

Stora Enso’s Commitment to Sustainability and Growth

Stora Enso is a key player within the global bioeconomy, recognized for its renewable products in packaging, biomaterials, and wooden construction. With extensive capabilities, the company strives to meet the growing demand for sustainable products through low-carbon and recyclable fiber solutions.

In 2023, Stora Enso reported impressive sales of €9.4 billion and employs approximately 20,000 individuals. Its shares are publicly traded on Nasdaq Helsinki Oy and Nasdaq Stockholm AB, among other markets.

Stora Enso’s commitment to both its employees and the environment illustrates its focus on long-term sustainability, making it a model for other companies aiming to balance profitability with positive social impact.

For further updates and inquiries regarding Stora Enso's operations and plans, please visit storaenso.com/investors.