Aktia Bank Plc’s Incentive Plans 2023–2024

Aktia Bank Plc
Stock Exchange Release
30 January 2023 at 5.30 p.m.

Aktia Bank Plc’s Incentive Plans 2023–2024

Share Savings Plan

The Board of Directors of Aktia Bank Plc has decided on a continuation of AktiaUna, a long-term share savings plan for the employees of the Aktia Group, that was launched in 2018 to support the implementation of Aktia’s strategy.

The objective of the share savings plan is to motivate Aktia’s employees to invest in Aktia shares and to own shares in Aktia. The objective is also to align the interests and commitment of the employees and management to work for a good value development and increased shareholder value in the long-term.

AktiaUna share savings plan offers approximately 900 Aktia employees the opportunity to save 2–4% of their salaries (the members of the Group’s Executive Committee up to 12% and selected key employees up to 7%) and with this savings amount regularly acquire Aktia shares at a 10% discount. Furthermore, the participants are motivated by granting them free matching shares against shares acquired in AktiaUna share savings plan after approximately two years. The prerequisite for receiving matching shares is that an employee holds the acquired shares until the end of the holding period, and their employment at Aktia has not terminated before the end of the holding period.

The value of the matching shares during the savings period 2023–2024 amounts to a maximum total of 2,600,000 euros upon the launch of the plan. At an Aktia share price of 10.84 euros, this amount corresponds to the value of approximately 240,000 Aktia shares. The final cost of the plan depends on the number of participants and shares acquired in the plan by the employees.

Executive and key employee incentive plan 2023

The Board of Directors of Aktia Bank Plc has decided to launch a new performance-based incentive plan for key employees, including CEO and group executive committee, of the group. The new incentive plan replaces Aktias current PSP plan and separate STI plan. The objective of the new plan is to support the company’s strategy by motivating the key employees to achieve financial and strategic targets set for the group.

The plan includes one 1-year performance period, calendar year 2023. During the performance period 2023, the reward from the plan is based on group comparable operating profit, strategic metrics decided by the board and participants individual performance. Participation in the program requires participation in AktiaUna share savings plan.

Half of the cash reward earned based on the performance period will be converted into Aktia shares after the performance period and will be paid in five instalments in 2024, 2025, 2026, 2027 and 2028, partly in Aktia shares and partly in cash. Shares received as a reward cannot be transferred within one year of the payment of the reward instalment.

At the target level, the maximum value of the reward based on the performance period is 2,560,000 euros in total upon the launch of the plan. The final cost of the plan depends on the achievement of the targets of the performance criteria of the performance period and on the conversion price of the share after the end of the performance period. During the performance period 2023, approximately 25 key employees belong to the target group of the plan.

Business Areas’ Performance-Based Incentive Plan

The Board of Directors of Aktia Bank Plc has decided to launch a new performance-based incentive plan 2023–2024 for the key employees of Aktia’s business areas. The objective of the plan is to support the company’s strategy by motivating the key employees to achieve financial and strategic targets set for key employees’ own business area.

The plan includes one 1-year performance period, calendar year 2023. The performance period is followed by an approximately 14-month restriction period. During the performance period 2023, the reward from the plan is based on each business area’s comparable operating profit. Participation in the program requires participation in AktiaUna share savings plan.

The cash reward earned based on the performance period will be converted into Aktia shares after the performance period and will be paid in five instalments after the end of the restriction period in 2025, 2026, 2027, 2028 and 2029, partly in Aktia shares and partly in cash. The cash portion is intended to cover taxes and tax-related costs arising from the reward to the key employee. Shares received as a reward cannot be transferred within one year of the payment of the reward instalment.

At the target level, the maximum value of the reward based on the performance period is 1,110,000 euros in total upon the launch of the plan. At an Aktia share price of 10.84 euros, this amount corresponds to the value of approximately 103,000 Aktia shares. The final cost of the plan depends on the achievement of the targets of the performance criteria of the performance period and on the conversion price of the share after the end of the performance period. During the performance period 2023, approximately 45 key employees belong to the target group of the plan.

The Board of Directors will annually decide on the launch of a new savings period of the share savings plan as well as on the launch of performance periods of the executive and key employee incentive plan and business areas’ performance-based incentive plan.

Aktia Bank Plc

Board of Directors

Further Information:

Lotta Borgström, Head of Investor Relations and Communications
Tel. +358 10 247 6838, lotta.borgstrom(at)aktia.fi

Joonas Lehtonen, Compensation Manager
Tel. +358 40 541 5350, joonas.lehtonen(at)aktia.fi

Distribution:
Nasdaq Helsinki Ltd
Mass Media
www.aktia.com

Aktia is a Finnish asset manager, bank and life insurer that has been creating wealth and wellbeing from one generation to the next for 200 years. We serve our customers in digital channels everywhere and face-to-face in our offices in the Helsinki, Turku, Tampere, Vaasa and Oulu regions. Our award-winning asset management business sells investment funds internationally. We employ approximately 900 people around Finland. Aktia's assets under management (AuM) on 30 September 2022 amounted to EUR 13.6 billion, and the balance sheet total was EUR 11.9 billion. Aktia's shares are listed on Nasdaq Helsinki Ltd (AKTIA). aktia.com.

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