Nokia Corporation has announced that its board has given the nod to a new share-based long-term incentive plan, as well as an employee share purchase plan. These schemes are set to operate until the end of 2026.
Nokia's Long-term Incentive Plan for 2024-2026 permits the company to offer particular executives and employees awards in the form of both performance and restricted shares. These awards can be granted any time between the approval of the plan and December 31, 2026. Restrictions on the final awards granted under this plan would lift in 2029.
The total maximum number of Nokia shares that could potentially be granted under the Long-Term Incentive plan for the years 2024 to 2026 is 350 million.
The purpose of Nokia's Employee Share Purchase Plan (ESPP), Nokia clarifies, is to promote share ownership among its employees, with the aim of elevating engagement and the feeling of ownership towards the company.
Under the ESPP for 2024-2026, eligible employees have the choice to allocate some of their monthly net salary towards the purchase of Nokia shares. The purchasing will be done at market value on predetermined dates on a quarterly basis throughout the specified plan period.
Interestingly, Nokia will present one matching share for every two purchased shares that the participant still possesses at the conclusion of the applicable plan cycle. Furthermore, participants will have the opportunity to attain free shares, provided they meet specific conditions related to participation as decided by the Board.
The sum of shares that can be issued under all plan cycles starting in the ESPP for 2024 to 2026 is capped at 45 million.
