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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 |
|
Return on capital at risk (RoCaR) |
Risk-free return**)
|
2023: 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* |
Outcome for 2017:1 |
|
Threshold for 2017:1/2* |
Outcome for 2017:1/2 |
|
|
Insurance Margin (IM) |
|
2020: above threshold levels |
|
Return on capital at risk (RoCaR) Weight 40% |
Risk-free return**)
|
2020: 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.