Mandatum plc, Stock exchange release/Other information disclosed according to the rules of the Exchange, 2 October 2023 at 6:40 pm EEST
Following the partial demerger of Sampo plc, effective as of 1 October 2023 (the “Demerger”) and the listing of Mandatum plc’s share in Nasdaq Helsinki, Mandatum plc’s Board of Directors has today decided that Mandatum Group’s key employees and the Group CEO shall remain in the long-term incentive scheme 2020 launched by Sampo in August 2020 and amended by Sampo in September 2023, to ensure retention of such key employees.
The total number of Mandatum Group's participants in the long-term incentive scheme is 31. The number of the incentive units allocated is 558,250 in total for the Mandatum Group. The incentive scheme complies with the Sampo Group Remuneration Principles, and the remuneration policies of the relevant Mandatum Group companies, as applicable at the launch of the scheme. Mandatum Board Members are not included in the scheme.
The allocation of incentive units was based on a combination of the assessment of the performance of the individual, of the business area and/or business unit concerned and of the overall results of the relevant Sampo Group company, the division and/or of Sampo Group, Mandatum being then a part of Sampo Group. Also qualitative criteria was taken into account in the assessment, such as the compliance with internal and external rules for the business.
The potential incentive reward will be paid in three installments, first of which has been paid in September 2023, prior to the Demerger. A deferral rule applies to incentive rewards paid to key employees who were subject to the deferral rule in accordance with the remuneration policies of the relevant Mandatum Group companies in force at the launch of this incentive scheme.
The incentive rewards to be paid shall be based on the share price development of the Sampo A share and Mandatum share, on the return on capital at risk and on the number of theoretical incentive units granted. The threshold values for the performance conditions and the calculation method for the value of one (1) incentive unit in each installment to be paid are presented in the terms and conditions of the incentive scheme 2020 (as amended), available at www.sampo.com/governance/remuneration/forms-of-remuneration/. The starting price, the maximum value and a theoretical market price for the scheme are available at the same address.
The value of one (1) incentive unit in the installments to be paid in 2024 shall be the combined value of the trade-weighted average price of the Sampo A share on Nasdaq Helsinki Ltd for twenty-five (25) trading days commencing the day after Sampo plc's publication of its Half-Year Financial Report in 2024 and the trade-weighted average price of the Mandatum plc share on Nasdaq Helsinki Ltd for twenty-five (25) trading days commencing the day after Mandatum plc's publication of its Half-Year Financial Report in 2024, but not more than the maximum value (being EUR 56.94 for the units allocated in 2020), reduced by the starting price.
The starting price shall be the trade-weighted average price of the Sampo A share on Nasdaq Helsinki Ltd during twenty-five (25) trading days commencing the day after Sampo plc's publication of its Half-Year Financial Report in 2020 (being EUR 32.94 for the units allocated in 2020), reduced by the combined dividends per share of Sampo plc and Mandatum plc decided up until the payment date, including, for the avoidance of doubt, any extra dividends as decided by the Board of Directors of the respective company.
Further installments to be paid shall be determined respectively as described in the terms and conditions available on Sampo’s website.
The core of the remuneration principles is that all remuneration systems shall safeguard the long-term financial stability of the Group and shall comply with regulatory and ethical standards. Risk sensitive but fair and rewarding compensation mechanisms enhance Mandatum Group’s ability to create stakeholder and shareholder value.
For further information, please contact:
Senior Vice President, Marketing and Communications, Mandatum plc
Tel. +358 40 728 1548
Financial Supervisory Authority
The principal media
Mandatum in brief
Mandatum is a major financial service provider that combines expertise in money and life. Mandatum offers customers a wide array of services covering asset and wealth management, savings and investment, compensation and rewards, pension plans and personal risk insurance. Mandatum offers services to corporate clients, private customers and institutional and wealth management customers. The success of Mandatum’s business relies on competent personnel, a strong brand and successful investments.