Stora Enso's Board announces new incentive plans for key employees

On December 12, 2024, in Helsinki, Stora Enso Oyj announced the establishment of two long-term share-based incentive plans aimed at key employees within the Group and its subsidiaries. This strategic decision reflects the company's intention to attract, retain, and motivate top-tier talent by aligning the interests of these key employees with those of its shareholders. Stora Enso, a significant player in the paper and wood products industry, has a workforce of roughly 20,000 employees and recorded sales of EUR 9.4 billion in 2023. The total anticipated investment for these incentive plans is EUR 20 million, which includes provisions for covering any taxes and social security contributions related to the the rewards that employees may earn under these plans. The first plan, named the Performance Share Plan 2025-2027, encompasses a single performance period from 2025 to 2027. Key individuals, including the CEO and other top executives from the Group Leadership Team, are eligible to participate. The plan allows participants to earn shares based on the company's performance over the specified period. However, participants will not receive any rewards if they leave the company or their employment is terminated before the end of the performance period. This provision ensures that key personnel remain with the company, fostering stability and continuity in leadership. The reward payment process also includes a condition wherein the amount may decrease if the company’s share price exceeds a predetermined cap set by the Board of Directors. This mechanism is designed to ensure that the rewards remain equitable and tied closely to the company's performance and overall share value. Furthermore, the company expects leaders to retain shares equivalent to their gross salary during their tenure, further aligning their financial interests with the company’s success. In conclusion, these new incentive plans demonstrate Stora Enso’s commitment to fostering an engaged workforce that is focused on long-term growth and shareholder value. By implementing these measures, the company aims to create a strong incentive structure that enhances employee performance while also encouraging loyalty and stability during a crucial period for the organization. Overall, this strategy reflects a broader trend among corporations seeking to create competitive advantages through strategic employee engagement and performance alignment.