Sampo to launch a new long-term incentive scheme SAMPO

SAMPO PLC       STOCK EXCHANGE RELEASE     17 September 2014 at 5.50 pm Sampo to launch a new long-term incentive scheme Long-term financial stability and value creation guide the remuneration design in Sampo Group. The starting point of compensation mechanisms is to encourage and stimulate employees at all levels to do their best and surpass their targets. To ensure the achievement of the wanted steering effects and to make them risk sensitive, each compensation component shall be designed in parallel both with the Group's general and each company's own, more specific risk management framework. Risk sensitive but fair and rewarding compensation mechanisms enhance Sampo Group's ability to create stakeholder and shareholder value. Sampo plc's Board of Directors has today decided to adopt a new long-term incentive scheme 2014:1 for the management of Sampo Group (including the Managing Director of Sampo plc) and other separately named key employees of Sampo Group. The total number of participants in the scheme is approximately 120. The scheme complies with the updated Sampo Remuneration Principles, which the Board of Directors approved today and the remuneration policies of the different Sampo Group companies in force at the launch of this scheme. The maximum number of the incentive units shall be 4,500,000 in total for the Group. A minimum of 95 per cent (4,275,000) of the incentive units will be allocated during September and October 2014 and a maximum of 5 per cent (225,000) of the incentive units may be allocated during September 2015. Allocations in September 2015 may be directed to new recruits or to current employees with materially changed circumstances. The allocation of incentive units shall be 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 or of the Group. Also qualitative criteria shall be taken into account in the assessment. The potential incentive reward will be paid in three installments. The first installment, based on 30 per cent of the granted incentive units, will be paid by the end of September 2017, the second installment, based on a further 35 per cent of the awarded incentive units, will be paid by the end of September 2018 and the third installment, based on the remaining 35 per cent of awarded incentive units, will be paid by the end of September 2019. A deferral rule applies to incentive rewards paid to key employees who are defined as a risk taker (Sweden, Norway and Denmark) or as an employee who receives a significant variable compensation (Finland). The deferral period is three years and applies to 60 per cent of the incentive rewards after deducting income tax and other comparable charges. The incentive rewards to be paid shall be based on the share price development of Sampo's A share on the NASDAQ OMX Helsinki Ltd, on the insurance margin in If P&C, on the return on capital at risk and on the number of theoretical incentive units granted. The threshold values for the above metrics are presented in the terms of the incentive scheme 2014:1 available at www.sampo.com/remuneration. The starting price and a theoretical market price for the scheme are available at the same address in week 41. Sampo has today also published the updated Remuneration Principles at www.sampo.com/remuneration. SAMPO PLC Jarmo Salonen Head of Investor Relations and Group Communications For further information, please contact: Jarmo Salonen Head of Investor Relations and Group Communications tel. +358 10 516 0030 Maria Silander Press Officer tel. +358 10 516 0031 Distribution: NASDAQ OMX Helsinki The principal media Financial Supervisory Authority www.sampo.com [HUG#1856613]