#Finland #Helsinki #Employee Retention #Stora Enso #Incentive Plans

Stora Enso's New Long-Term Incentive Initiatives

Stora Enso Oyj, a significant player in the global bioeconomy, recently announced the establishment of two new long-term share-based incentive plans designed explicitly for its key employees. This strategic move comes from the company's Board of Directors as part of a broader effort to retain top talent within the organization while simultaneously aligning employee interests with those of shareholders.

With one of the core objectives being to motivate, encourage, and attract leading talent, the plans are structured to be competitive within the industry. Stora Enso aims to reward approximately 300 employees under these plans, with a maximum total grant opportunity pegged at around 20 million euros at the time of issuance. The incentives will be distributed in the form of Stora Enso R shares and cash, allowing recipients to cover taxes and social security contributions associated with the rewards.

Performance Share Plan 2025–2027

At the heart of one of these plans is the Performance Share Plan 2025–2027, which will operate over a single performance period encompassing financial years 2025 to 2027. Throughout this plan, designated employees, including members of the Group Leadership Team and the CEO, will have the opportunity to earn shares based on their performance metrics. The plan includes various performance indicators, such as Earnings Per Share (EPS), Total Shareholder Return (TSR), reduction of CO2 emissions, and promoting gender balance in managerial roles.

It's crucial to note that the rewards from this plan will only be allocated after the completion of the vesting period, and employees must remain with the company throughout this time to qualify for rewards. The amount distributed as a reward may also be subject to adjustment based on the company’s share price exceeding a limit defined by the Board of Directors. Furthermore, members of the Group Leadership Team are encouraged to maintain a shareholding value equivalent to their gross salary while they remain at their positions.

Restricted Share Unit Plan 2025–2027

Complementing the performance-based approach is the Restricted Share Unit Plan 2025–2027, which targets key employees within the Group. This plan consists of a period that concludes on December 31, 2027. Similar to the Performance Share Plan, participants must fulfill their commitments and remain in the company through to the conclusion of the plan to receive their rewards. The payout for the Restricted Share Unit Plan will also occur after the end of this plan period.

Stora Enso's Vision and Future

As part of the global move toward sustainability, Stora Enso is recognized as a leader in renewable products, spanning packaging, biomaterials, and wooden construction while being one of the largest private forest owners worldwide. Their commitment remains strong towards creating added value through their low-carbon, recyclable, and fiber-based offerings, which support clients in meeting the increasing demand for sustainable products.

In 2023, Stora Enso recorded approximately 20,000 employees and sales reaching 9.4 billion euros. The company’s stock is officially traded on Nasdaq Helsinki and Nasdaq Stockholm, along with OTC Markets in the USA, indicating their robust presence in the market.

Ultimately, with these two new incentive plans, Stora Enso is not only focused on rewarding its key employees but also on fostering a culture of sustainability and long-term growth, proving that the integration of employee satisfaction aligns well with creating shareholder value. By investing in their employees, Stora Enso is reinforcing its strategic position as a growth-oriented leader in the bioeconomy sector.