Thursday, 17 December 2020

Finnair's Board of Directors decided on a new period to the employee share savings plan

Employee share plan

The Board of Directors of Finnair Plc has decided to launch a new savings period under the Employee Share Savings Plan. The purpose of the plan introduced in 2013 is to encourage the employees to become shareholders in the company, to provide long-term rewards through potential share price appreciation and thereby strengthen the employees’ interest in the development of Finnair’s shareholder value. 

Participation in the share savings plan is voluntary. The decided 12-month savings period will commence on 1 July 2021. Potential future savings periods are subject to separate Board decisions. 

The eligible Finnair employees are offered the opportunity to invest part of their base salary in Finnair shares through the plan. Finnair awards each participant one Matching Share for each two purchased shares after a holding period of approximately two years. The awarded shares are taxable income for the recipient. 

To increase the attractiveness of the plan, each employee participating in the plan for the first time in this savings period will additionally be awarded 110 bonus shares in October 2021, provided that employee participates at least in the first three months of the plan. The plan will be offered to approximately 5 100 Finnair employees in Finland. The maximum monthly savings are eight per cent and the minimum are two per cent of each participant's gross base salary during one month. The total amount of all savings in 2021–2022 may not exceed 7.5 euros million, which equals to approximately 12.3 million shares, using the 15 December 2020 closing share price of 0.61 euros. 

Shares will be purchased with the accumulated savings at the market price quarterly, after the publication dates of the Finnair's interim results. Any dividends paid on purchased shares during the commencing savings period will be reinvested into additional shares on the following purchase date. These shares will have equal rights to Matching Shares. 

Recommended for you...

No comments: