Finnair board approves performance share plan

Finnair's board of directors has approved a new individual performance-based share plan as part of its existing long-term incentive scheme structure. The plan, spanning between 2024 and 2026, allows participants (which includes the company's board as well as other management and experts) to earn Finnair shares as a long-term incentive reward if performance targets set by the board are met. The maximum number of shares expected to be delivered based on the plan is 118 million. Finnair said in a statement: ""The purpose of the plan is to incentivise the participants to work for increased shareholder value in the long-term, and to increase retention."" It features three-year performance periods, with potential share rewards to be delivered to participants in one tranche after the performance period. The potential share rewards will be delivered to the participants in the spring of 2027. The company's board are expected to retain at least 50% of the net shares received based on the arrangement until their share ownership in Finnair corresponds to at least their annual gross base salary. The maximum combined value of all variable compensation paid to an individual participant in any given year may not exceed 120% of the the participant's annual gross salary.