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Long-Term Incentives

Long-term incentive schemes are used to commit key employees to Sampo Group for a longer period of time. The schemes are designed to align participants' interests with those of the shareholders by linking the payout of the schemes to key performance criteria and, if applicable, to the positive development of the share price. An invitation to an employee to participate in a long-term incentive scheme is a strong recognition for successful and persevering performance.

The long-term incentive schemes in Sampo plc, If and Mandatum

In Sampo Group, key employees are entitled to the following long-term incentive schemes based on financial instruments of Sampo plc.

Terms and Conditions of the Long-term Incentive Schemes

Scheme 2017:1/2 2020:1 2020:1/2 2020:1/3
Allocated incentive units (pcs) 29,750 3,804,500 220,000 208,000
of which to Group Executive Committee members* 0 1,180,000 0 0
of which to Group CEO* 0 350,000 0 0
Starting price (EUR)** 33.38 27.14 39.39 44.74
Theoretical market value (EURm)*** 0.5 77.9 2.6 1.8
Persons 9 109 12 16
Terms Terms Terms Terms Terms

* Figures represent the outstanding part of the initial allocation. 
** Dividend adjusted starting price
*** Calculation based on Black & Scholes model. Insurance margin and return on capital at risk criteria assumed to be fulfilled at 100 per cent.

The weightings of the LTI performance metrics, target thresholds and their outcome are described in the tables below.

Long-term incentive scheme 2020:1

Performance metrics Threshold Outcome
Sampo A-share price Threshold for 2020:1
Starting price 27.14 EUR*

Threshold for 2020:1/2
Starting price 39.39 EUR*

Threshold for 2020:1/3
Starting price 44.74 EUR*

2023: performance to be assessed
2024: performance to be assessed
2025: performance to be assessed

Return on capital at risk (RoCaR)

Weight 100%

Risk-free return**)

  • plus 3% but less than plus 5%: 50% of installment is paid
  • plus 5% or above: 100% of installment is paid

2023: performance to be assessed
2024: performance to be assessed
2025: performance to be assessed

*) Dividend adjusted starting price as of June 2022
**) Risk-free return is defined as Finnish Government 3-year average bond yield during the period Q3 2020 to Q2 of the respective installment year.

 

Long-term incentive scheme 2017:1

Performance metrics Threshold Outcome
Sampo A-share price

Threshold for 2017:1*
2020: Starting price 36.29 EUR
2021: Starting price 34.59 EUR
2022: Starting price 30.49 EUR



Outcome for 2017:1
2020: 31.71 EUR (Value of one incentive unit 0.00 EUR)
2021: 43.14 EUR (Value of one incentive unit 8.55 EUR)
2022: 44.75 EUR (value of one incentive unit 14.26 EUR)

 

Threshold for 2017:1/2*
2021: Starting price 37.48 EUR
2022: Starting price 33.38 EUR

Outcome for 2017:1/2
2021: 43.14 EUR (value of one incentive unit 5.66 EUR)
2022: 44.75 EUR (value of one incentive unit 11.37 EUR)
2023: performance to be assessed

Insurance Margin (IM)

Weight 60%

  • at least 4% but less than 6%: 30% of installment is paid
  • 6% or above: 60% of installment is paid

2020: above threshold levels
2021: above threshold levels
2022: above threshold levels

Return on capital at risk (RoCaR)

Weight 40%

Risk-free return**)

  • plus 2% but less than plus 4%: 20% of installment is paid
  • plus 4% or above: 40% of installment is paid

2020: above threshold levels
2021: above threshold levels
2022: above threshold levels

*) Dividend adjusted starting prices
**) Risk-free return is defined as Finnish Government 3-year average bond yield or zero, during the period Q3 of launch year to Q2 of the respective installment year, whichever is higher.

The long-term incentive programme in Topdanmark

In Topdanmark Group, key employees are entitled to share option schemes. The options are granted at the beginning of a financial year entitling the key employees to buy or subscribe for shares in Topdanmark. The strike price is fixed at 110% of the market price of Topdanmark's share on the last trading date in the prior financial year (average of all trades). The options can be exercised during 3-5 years subsequent to the granting. The value of the options is calculated based on the Black & Scholes model. The options are covered by Topdanmark's holding of own shares.

The long-term incentive schemes in Hastings

In Hastings, employees who are considered key long-term talent and critical to the strategy of the company, are eligible to receive a long-term incentive award. Long term incentives are designed to align remuneration with the long-term vision and performance of the company, and to retain key talent.

Participants are granted an initial cash-based award, the value of which is linked to the value of the company. Awards vest after three years, to the extent the performance conditions are met. Performance conditions are aligned with Hastings´ three-year plan.

Updated 5 Jan 2023