Sampo introduces new incentive program for top employees

Published 12/03/2025, 15:48
Sampo introduces new incentive program for top employees

HELSINKI - Finnish financial company Sampo plc has established a new long-term incentive scheme for its Group Executive Committee, including the Group CEO, along with other senior leaders and key employees. The incentive plan, set to run from 2025 to 2027, mirrors the structure of the previous scheme launched in 2024.

The Board of Directors of Sampo announced today that this performance-based scheme aims to align management incentives with shareholder interests and the company’s strategic goals. Excluding the Board of Directors, the scheme will cover approximately 93 key personnel whose contributions significantly affect Sampo Group’s operational performance and strategy implementation.

Under the Long-Term Incentive scheme 2025 (LTI 2025), eligible participants will be granted performance incentive units, with a cap set at 2,250,000 units in total. The performance period for these units spans three fiscal years, from 2025 through 2027, followed by deferral periods as per the applicable regulations of Sampo Group.

To receive the maximum reward, participants must demonstrate exceptional financial and operational performance. The performance criteria include relative and adjusted absolute total shareholder return, underwriting profit growth, and achievements related to a sustainability charter focusing on Science Based Targets.

The rewards from the LTI 2025 will be paid out as cash compensation, with a stipulation for participants under the deferral rule to invest 50% of the net after-tax reward in Sampo A shares. This investment is subject to a three-year deferral period and a risk and compliance assessment by the Board before any shares are distributed.

The LTI 2025 has a maximum potential vesting of 688,209 performance incentive units for the Group CEO and Executive Committee members, and up to 1,561,791 units for other senior leaders and key employees. The estimated cost of the scheme is approximately EUR 35 million, assuming full vesting of the incentive units and a 50% increase in Sampo A share price from January 1, 2025.

Sampo’s long-term incentive plans are designed to recruit and retain highly skilled professionals capable of advancing the company’s long-term strategy and increasing shareholder value, while also promoting sustainable business practices and the Group’s financial stability. This information is based on a press release statement from Sampo plc.

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