Sanoma introduces a share-based long-term incentive programme to replace Sanoma’s stock options


Sanoma Corporation, Stock Exchange Release, 7 February 2013 at 15:15 CET+1

The Board of Directors of Sanoma Corporation has approved a share-based long-term incentive programme (Performance Share Plan) to be offered to executives and managers of Sanoma Corporation and its subsidiaries.

The Performance Share Plan is the long-term part of the remuneration and commitment programme for the executives and managers of Sanoma Corporation and its subsidiaries. Purpose of the Performance Share Plan is to encourage the executives and managers to work on a long-term basis to increase shareholder value and to commit the executives and managers to the Company. The Performance Share Plan will replace the Sanoma stock options schemes, under which no new stock option allocations will be made. The existing stock option schemes 2007, 2008, 2009, 2010 and 2011 will continue according to their current terms and conditions.

The Performance Share Plan consists of annually commencing new plans subject to the approval of the Board of Directors of Sanoma Corporation in each case. Each Performance Share Plan offers a possibility to receive Sanoma Corporation shares as a long-term incentive reward, provided that the performance targets set by the Board of Directors for the performance period of the plan are achieved.

The first Performance Share Plan 2013-2014 consists of a two-year performance period and the subsequent Performance Share Plans a three-year performance period. The share rewards will be delivered to the participants after the performance period.

The Performance Share Plan 2013-2014 will comprise a maximum of 1,070,000 shares (gross). The Board of Directors of Sanoma Corporation has decided to allocate a total of 1,046,888 shares to 265 executives and managers of Sanoma Corporation and its subsidiaries. The remaining 23,112 shares are left unallocated for potential use at a later stage.

The estimated cost for the Performance Share Plan 2013-2014 for the company at target level is around EUR 5.3 million.

The performance measures for the Performance Share Plan 2013-2014 are based on the earnings per share (excluding non-recurring items), and the development of digital and other new media sales.

Additional information
Sanoma's Investor Relations, Martti Yrjö-Koskinen, tel. +358 40 684 4643 or ir@sanoma.com

Sanoma.com

Sanoma inspires, informs and connects. Sanoma is a leading European group with a focus on consumer media and learning. We bring information, experiences, education and entertainment to millions of people every day. We employ over 10,000 professionals in some 20 countries. In 2012, the Group’s net sales totalled EUR 2.4 billion. Sanoma’s shares are listed on the NASDAQ OMX Helsinki.