Nokia Board of Directors approved the Nokia equity program for 2021-2023

Nokia Corporation
Stock Exchange Release
February 18, 2021 at 9.00 (CET +1)          

Nokia Board of Directors approved the Nokia equity program for 2021-2023

Espoo, Finland – Nokia Board of Directors has approved the Company’s equity program for 2021-2023 (Program). The Program includes a new share-based long-term incentive plan (LTI Plan) and an employee share purchase plan (ESPP) under which awards may be granted until December 31, 2023.

Long-term Incentive Plan 2021-2023

Nokia seeks to recognise, reward and retain its most talented employees. The long-term incentive plan intends to effectively contribute to the long-term value creation and sustainability of the Company and align the interests of the executives and employees with those of Nokia’s shareholders. Nokia’s long-term incentive plan for 2021-2023 is a key tool which supports these objectives. Under the LTI Plan the company may grant eligible executives and other employees awards in the form of both performance shares and restricted shares.

Awards under the LTI Plan may be granted between the date the plan is approved and December 31, 2023 subject to applicable performance metrics as well as performance and/or restriction periods of up to 36 months depending on the award. Consequently, the restriction periods for the last awards granted under the LTI Plan would end in 2026. Performance metrics as well as weightings and targets for the selected metrics for performance shares are set by the Board of Directors annually to ensure they continue to support Nokia’s long-term business strategy and financial success. Further disclosure on annual implementation of the LTI Plan is provided in the Company’s annual report and website.

The potential maximum aggregate number of Nokia shares that may be issued based on awards granted under the LTI plan in 2021, 2022 and 2023 is 350 million. Until the Nokia shares are delivered, the participants will not have any shareholder rights, such as voting or dividend rights associated with the performance or restricted shares. If the participant’s employment with Nokia terminates before the vesting date of the award or a part of an award, the individual is not, as a main rule, entitled to settlement based on the plan.