Sampo Oyj introduces new long-term incentive plan

HELSINKI - Sampo Oyj has announced the implementation of a performance-based long-term incentive plan for its group executive committee, including the group CEO, other top management, and key personnel. The plan, designed to align with shareholder interests and the group’s strategy, spans the years 2025 to 2027.

The incentive system is structured similarly to the one introduced in 2024 and aims to ensure that executive incentives support the company’s strategic objectives. Approximately 93 members of the group’s top management and key personnel, whose performance and expertise directly affect Sampo’s operational performance and strategic execution, will participate in the plan. Board members of Sampo are not included.

Participants will be granted performance-based incentive units in 2025, with a maximum of 2,250,000 units available. These units are subject to a three-year earning period covering the years 2025-2027, followed by a deferral period in accordance with the applicable regulations within the Sampo Group. To achieve the maximum reward, exceptional financial and operational performance is required. The performance assessment will be based on relative total shareholder return, adjusted absolute share return, development of underwriting results, and adherence to responsibility principles, including science-based climate targets and balanced scorecards at the group and subsidiary levels.

The value of the performance-based incentive units will fluctuate with the share price of Sampo’s A-shares during the earning period, and the reward will be paid as a cash compensation. Participants subject to deferral rules at the time of the plan’s introduction must purchase Sampo A-shares with 50% of the post-tax reward. The deferral period is three years, with a risk and compliance assessment by the board before releasing the shares to participants.

For the group CEO and other executive committee members, a maximum of 688,209 performance-based incentive units may be granted, while other top management and key personnel may receive up to 1,561,791 units. The estimated total value of the LTI 2025 incentive system is around €35 million, assuming full realization of the maximum number of incentive units and a 50% increase in the price of Sampo A-shares from the level on January 1, 2025.

This incentive system is part of Sampo Oyj’s strategy to attract and retain highly qualified and high-performing individuals capable of executing the company’s long-term strategy and creating shareholder value, while ensuring responsible business practices and the group’s long-term financial stability.

The details of the incentive plan are based on a press release statement by Sampo Oyj.

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