Fortum commences the 2024–2026 incentive plan as part of its ongoing long-term incentive programme

FORTUM CORPORATION INVESTOR NEWS 20 DECEMBER 2023 AT 16:15 EET

The Board of Directors of Fortum Corporation has decided to commence the 2024–2026 long-term incentive (LTI) plan for key employees and executives. The 2024–2026 LTI plan is part of Fortum's ongoing LTI programme and follows the same principles as the previous plan.

The performance measures for the LTI plan support the execution of Fortum’s strategic priorities to deliver clean energy reliably, drive decarbonisation in industries and to transform and develop. The measures are also in line with the company’s ambitious environmental targets. The relative Total Shareholder Return (TSR) is measured relative to the peer group comprising selected European utility companies. The other performance measures are based on the increase in the share of long-term customer power purchasing agreements (PPA) as part of hedging, and the ESG measures are based on the development of a pipeline of renewable energy for future optionality, and emission reduction targets aligned with SBTi.

The rewards related to the 2024–2026 LTI plan will be paid in the spring 2027, assuming that the performance targets are achieved.

The 2024–2026 LTI plan will comprise a maximum amount of approximately 110 participants, including the members of the Fortum Leadership Team.

The Board of Directors also decided to commence the 2024–2026 restricted share (RS) plan as a supplement to the LTI programme and reserve shares that potentially will be delivered in the spring 2027.

The maximum amount of shares of the plan that may be delivered as a reward is expected to be approximately 1,100,000 shares for the 2024–2026 LTI plan and 110,000 shares for the 2024–2026 RS plan.

One of the objectives of the LTI programmes is also to support the delivery of sustainable long-term performance, and to align the interests of the executive management and key employees with its shareholders. The programmes comply with the Finnish Government ownership guidelines for management remuneration.

For further information regarding the company’s incentive programmes, please see Fortum’s Remuneration Policy and Report: www.fortum.com/remuneration.

Fortum Corporation

Ingela Ulfves
Vice President, Investor Relations and Financial Communications

Further information:

Investors and analysts:
Ingela Ulfves, VP, Investor Relations and Financial Communications, tel. +358 40 515 1531
Rauno Tiihonen, Director, Investor Relations, tel. +358 10 453 6150

Media:
Fortum News Desk, tel. +358 40 198 2843