Engagement in Long-Term Incentive Programs
Recently, the members of Hydro’s Executive Leadership Team actively participated in the company’s Long-Term Incentive (LTI) plan, reflecting their commitment to the success and growth of Norsk Hydro ASA. This plan, which ties a significant portion of their remuneration to performance metrics, is designed to align the interests of the executives with that of the shareholders.
Understanding the Long-Term Incentive Plan
The LTI program offers a maximum remuneration of up to 30 percent of the annual base salary for the President and CEO, as well as the other executives. This incentive depends on achieving specific performance criteria, which are split into two equal parts:
- Hydro's average adjusted Return on Capital Employed (RoCE) over three years compared to its target, gauging the company's operational performance.
- Hydro's Total Shareholder Return (TSR) over three years, which compares the company’s performance against that of a group of peers, establishing a competitive benchmark.
Furthermore, the payment of LTI rewards is contingent upon Norsk Hydro achieving a positive adjusted EBIT from the prior year. Executives participating in this program are required to invest the net after-tax amount back into Hydro shares, which they must hold for a minimum of three years.
Share Acquisitions by Executives
On April 24, 2025, the executives received shares under the LTI plan at a share price of NOK 66.86. This initiative is pivotal in encouraging long-term value creation within the company, ensuring that the leadership remains focused on sustainable growth.
Supporting Employees through Share Purchase Programs
In addition to the LTI plan, Norsk Hydro encourages its employees in Norway to engage with the company by purchasing shares under a general arrangement. This initiative offers each employee the opportunity to buy shares valued at NOK 14,976.64 with a significant 50 percent discount, making the share price effectively NOK 33.43 per share.
For the 224 shares allocated, the investment opportunity not only fosters a sense of ownership among employees but also reinforces their commitment to the company's success.
Insider Participation in Share Acquisitions
A noteworthy detail is the involvement of primary insiders who have purchased shares both under the LTI plan and the employee share purchase plan. This transparent approach demonstrates the leaders’ confidence in Hydro's future and their strategic alignment with the company's objectives.
Insights into Primary Insider Share Accountability
The following primary insiders participated in these share acquisitions. Their commitment showcases a strong belief in the future performance of Norsk Hydro:
- Eivind Kallevik, President & CEO, acquired 13,507 shares from the LTI plan and an additional 224 under the employee share purchase program, resulting in a new total holding of 111,605 shares.
- Anne-Lene Midseim, EVP of Legal and Compliance, acquired 7,133 shares from the LTI plan, alongside 224 shares from the employee plan, raising her total to 58,899 shares.
- Hanne K. Simensen, EVP of Hydro Aluminium Metal, added 5,849 shares under the LTI plan, bringing her total holdings to 6,664.
- John Thuestad, EVP of Hydro Bauxite & Alumina, invested in 13,828 shares from the LTI plan, alongside 224 shares from the employee program for a total of 107,455.
- Hilde Vestheim Nordh, EVP of People & HSE, acquired 6,382 shares from the LTI plan and an impressive 448 shares from the employee initiative, increasing her total to 50,868 shares.
- Paul Warton, EVP of Hydro Extrusions, took part as well, acquiring 16,840 shares from the LTI plan, rounding up his total to 53,038.
- Therese Rød Holm, EVP of Communication & Public Affairs, added 5,447 shares and purchased 224 shares, holding now 14,540 shares in total.
- Kari E. Thørud, EVP of Hydro Energy, acquired 4,154 shares along with 224 purchased shares under the employee arrangement, totaling 4,766 shares.
- Trond O. Christophersen, CFO & EVP of Corporate Development, acquired 8,287 shares from the LTI program and an additional 224 under the employee plan, gathering a total of 23,659 shares.
This level of executive investment not only highlights their confidence in Norsk Hydro but also sets a strong example for shareholders and employees alike, reinforcing a culture of shared success.
Investor and Media Contact Information
For inquiries related to this announcement, stakeholders can reach out to:
Investor contact:
Martine Rambøl Hagen
+47 91708918
Martine.Rambol.Hagen@hydro.com
Media contact:
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com
This disclosure adheres to the requirements set forth by the Norwegian Securities Trading Act.
Frequently Asked Questions
What is the Long-Term Incentive Plan at Norsk Hydro?
The LTI plan is a share-based compensation program aimed at aligning the executives’ interests with shareholders by tying a portion of their pay to company performance metrics.
How does the employee share purchase program work?
Employees in Norway can purchase shares at a discount, fostering a sense of ownership and commitment to the company, with a defined share price and allocation.
Who are the primary insiders involved in recent share purchases?
Key executives, including the President & CEO and other EVPs, actively participated in the share acquisition, demonstrating their confidence in the direction of Norsk Hydro.
What performance metrics are used to assess the LTI program?
The program assesses Hydro's Return on Capital Employed (RoCE) and Total Shareholder Return, which are critical for determining associated compensation.
How can I inquire further about Norsk Hydro's shares?
For any inquiries, stakeholders can reach out to designated investor and media contacts provided in the announcement.
