FORTUM CORPORATION STOCK EXCHANGE RELEASE 11 OCTOBER 2019 AT 9:00 EEST
Release category: Other information disclosed according to the rules of the Exchange
The Board of Directors of Fortum Corporation has decided to establish an Employee Share Savings (ESS) programme and to launch the savings period for the year 2020 under that programme. The objective of the ESS programme is to motivate Fortum employees to invest and retain ownership in the company and to align the employees' interests with its shareholders.
The ESS programme consists of annually commencing savings periods during which the employees can save a proportion of their salaries and purchase Fortum shares with the accrued savings. The shares for the ESS programmes will be purchased from the market quarterly after Fortum's interim reports have been published. Dividends paid for the shares will be reinvested in additional shares to be purchased from the market after the dividend payment. The Board of Directors will annually decide on the potential launch of each individual savings period.
The ESS programme participants will, as a gross reward, be granted one matching share for each two purchased savings shares after approximately three years from the beginning of the savings period. The prerequisites for receiving matching shares are that a participant holds the purchased savings shares until the end of the holding period, and that his or her employment has not ended before the end of the holding period. The holding period for the 2020 savings period will end on 28 February 2023.
The ESS programme will be offered to all employees of the Fortum Group, apart from where local legislation or other reasons makes an ESS programme unfeasible, such as in Russia. In total approximately 5,000 employees will have the opportunity to participate. Participation in the ESS programme is voluntary. The total amount of all savings for the 2020 savings period may not exceed EUR 6 million.
"We value our employees highly and want to share Fortum's success with them. The employee share savings programme is our new way of committing to our employees and a great opportunity for Fortum to encourage our employees to become long-term owners of the company," says Pekka Lundmark, President and CEO of Fortum.
Vice President, Investor Relations and Financial Communications
Måns Holmberg, Manager, IR and Financial Communications, tel. +358 44 518 1518
Jari Laitinen, Vice President, Compensation and Benefits, tel. +358 40 660 2506