UPM Introduces New Performance Share Arrangement for 2025-2027: A Focus on Sustainability and Management Incentives
UPM-Kymmene Corporation has officially launched a new performance incentive plan for the period of 2025 to 2027, as announced by the Board of Directors. This initiative is part of the Performance Share Arrangement, designed to aselectively reward top executives and senior management while emphasizing the importance of sustainability metrics in corporate performance.
The Performance Share Arrangement is structured with annual plans implemented upon Board approval, ensuring that each period is directly aligned with UPM's strategic goals. The program specifically targets members of the executive team and other selected senior managers, fostering a culture of accountability and success.
For the earning period of 2025 to 2027, UPM has identified essential performance criteria revolving around total shareholder returns and various sustainability benchmarks. The sustainability measures are particularly notable, highlighting UPM's commitment to reducing fossil CO2 emissions from both on-site combustion and purchased energy sources. Additionally, UPM aims to achieve a net positive impact on biodiversity within its Finnish forests, alongside striving for gender pay equity across its global operations.
This plan uniquely encompasses a total of 27 participants. Should all outlined objectives be fully realized, UPM anticipates delivering approximately 552,000 shares as rewards. However, participants will receive these shares after taxes have been deducted, which will be applied to the total gross reward value. It's also assured that the delivery of these shares will occur using already existing shares, thereby precluding any dilutive effect on the overall shareholder value.
Furthermore, the plan stipulates that the receipt of any share rewards is contingent not only on meeting the pre-defined earning criteria but also on the continuation of employment with UPM during the entire performance period. Shares earned through this initiative for the 2025-2027 period are planned for distribution in the year 2028, fostering long-term commitment and incentive alignment.
In addition to this newly introduced Performance Share Arrangement, UPM currently maintains two other long-term incentive plans: the Deferred Bonus Arrangement and the Restricted Share Arrangement, alongside an Employee Share Savings Arrangement. This multi-faceted approach underlines UPM's strategy to incentivize its workforce while promoting sustainable business practices.
Through these efforts, UPM aims to reinforce its positioning as a leader in responsible business initiatives. The company's pledge to innovate for a future beyond fossil fuels is evident across its extensive operations, which include six core business segments: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, and UPM Plywood.
With a workforce of 15,800 employees worldwide and average annual revenues reaching approximately EUR 10.3 billion, UPM is well-equipped to take significant strides forward in the domain of sustainability. Its active contributions toward mitigating climate change align with the United Nations’ Business Ambition for 1.5°C. Check UPM’s website for more details and updates on their ongoing initiatives and efforts toward a sustainable future beyond fossil resources.
The Performance Share Arrangement is structured with annual plans implemented upon Board approval, ensuring that each period is directly aligned with UPM's strategic goals. The program specifically targets members of the executive team and other selected senior managers, fostering a culture of accountability and success.
For the earning period of 2025 to 2027, UPM has identified essential performance criteria revolving around total shareholder returns and various sustainability benchmarks. The sustainability measures are particularly notable, highlighting UPM's commitment to reducing fossil CO2 emissions from both on-site combustion and purchased energy sources. Additionally, UPM aims to achieve a net positive impact on biodiversity within its Finnish forests, alongside striving for gender pay equity across its global operations.
This plan uniquely encompasses a total of 27 participants. Should all outlined objectives be fully realized, UPM anticipates delivering approximately 552,000 shares as rewards. However, participants will receive these shares after taxes have been deducted, which will be applied to the total gross reward value. It's also assured that the delivery of these shares will occur using already existing shares, thereby precluding any dilutive effect on the overall shareholder value.
Furthermore, the plan stipulates that the receipt of any share rewards is contingent not only on meeting the pre-defined earning criteria but also on the continuation of employment with UPM during the entire performance period. Shares earned through this initiative for the 2025-2027 period are planned for distribution in the year 2028, fostering long-term commitment and incentive alignment.
In addition to this newly introduced Performance Share Arrangement, UPM currently maintains two other long-term incentive plans: the Deferred Bonus Arrangement and the Restricted Share Arrangement, alongside an Employee Share Savings Arrangement. This multi-faceted approach underlines UPM's strategy to incentivize its workforce while promoting sustainable business practices.
Through these efforts, UPM aims to reinforce its positioning as a leader in responsible business initiatives. The company's pledge to innovate for a future beyond fossil fuels is evident across its extensive operations, which include six core business segments: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, and UPM Plywood.
With a workforce of 15,800 employees worldwide and average annual revenues reaching approximately EUR 10.3 billion, UPM is well-equipped to take significant strides forward in the domain of sustainability. Its active contributions toward mitigating climate change align with the United Nations’ Business Ambition for 1.5°C. Check UPM’s website for more details and updates on their ongoing initiatives and efforts toward a sustainable future beyond fossil resources.
Topics Business Technology）
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