Stora Enso Introduces New Incentive Plans for Employees

Stora Enso Launches Two Innovative Incentive Plans

Stora Enso Oyj has announced the establishment of two new share-based incentive plans designed specifically for its key employees. The initiative aims to enhance motivation, retention, and attraction of top-tier talent within the organization. These plans align closely with the company's mission to create long-term value while fostering a committed workforce.

Aligning Interests of Employees and Shareholders

The primary objective of these incentive plans is to harmonize the interests of key employees with those of Stora Enso's shareholders, ultimately contributing to the enhancement of the company's value in the long run. This alignment is crucial as it not only aids in retaining vital talent but also ensures that employees have a vested interest in the company’s performance.

Overview of the Performance Share Plan 2025–2027

The Performance Share Plan spanning 2025 to 2027 features a single performance period that encompasses the financial years 2025 through 2027. Key employees will have the chance to earn shares in Stora Enso based on various performance metrics, including earnings per share (EPS), total shareholder return (TSR), CO2 emissions reduction, and the gender balance in leadership roles.

Qualified participants in this plan include influential figures such as the CEO and other members of the Group Leadership Team. One crucial aspect of this plan is that no rewards will be granted if a participant's employment ends before the performance period concludes. As an added precaution, the reward amount may be adjusted if the share price exceeds predefined levels.

Expectation for Shareholding

Stora Enso emphasizes that members of its Group Leadership Team are expected to retain shares equivalent to a value corresponding to their gross salaries, promoting a culture of ownership and accountability as they hold these positions.

Details of the Restricted Share Unit Plan 2025–2027

Alongside the Performance Share Plan, the Restricted Share Unit Plan 2025 to 2027 caters to key employees within Stora Enso. This plan is structured to conclude on December 31, 2027, with rewards dispensed upon completion of the plan period.

Similar to the Performance Share Plan, this initiative stipulates that participants must remain employed for the entirety of the plan duration to qualify for rewards.

Company Information

Stora Enso plays a pivotal role in the global bioeconomy, specializing in renewable products across packaging, biomaterials, and wooden construction. Being one of the largest private forest owners globally, it leverages low-carbon and recyclable fiber-based products to meet the growing demand for sustainable solutions in the marketplace.

With approximately 20,000 employees and a substantial sales figure recorded in a recent year, Stora Enso continues to advance its mission of sustainability and innovation, listing its shares on both Nasdaq Helsinki Oy and Nasdaq Stockholm AB.

Contact Information

For further inquiries about these plans, please reach out to:

Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349

Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691

Frequently Asked Questions

What are the new incentive plans introduced by Stora Enso?

The new plans are the Performance Share Plan and the Restricted Share Unit Plan designed to attract and retain top talent.

How do the incentive plans align employee interests with shareholders?

These plans ensure that employees' rewards are tied to performance measures that enhance company value, aligning their goals with those of shareholders.

Who is eligible for the Performance Share Plan?

Key employees, including the CEO and members of the Group Leadership Team, are eligible to participate in this plan.

What performance measures are included in the plans?

The plans include metrics such as earnings per share, total shareholder return, CO2 emissions reduction, and gender balance in management roles.

What happens if a participant leaves the company before the plan ends?

Typically, if a participant's employment ends before the end of the performance or plan period, they will not be eligible to receive rewards.

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