Sampo Oyj Sampo To Launch A New Long-term Incentive Scheme

Features Dow Jones Newswires

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SAMPO PLC STOCK EXCHANGE RELEASE 14 September 2017 at 5.15 pm

Sampo to launch a new long-term incentive scheme

Sampo plc's Board of Directors has today decided to adopt a new

long-term incentive scheme 2017:1 for the management of Sampo Group

(including the Group CEO) and other key employees of Sampo Group. Sampo

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Board Members are not included in the scheme. The total number of

participants in the long-term incentive scheme is 117. The incentive

scheme complies with the Sampo Group Remuneration Principles and the

remuneration policies of the relevant Sampo Group companies.

The maximum number of the incentive units shall be 4,500,000 in total

for the Group. A maximum of 95 per cent of the incentive units may be

allocated during September to October 2017 and the remaining incentive

units may be allocated during September to October 2018. Allocations in

September and October 2018 may be directed to new recruits or to current

employees with materially changed circumstances.

The allocation of incentive units shall be based on a combination of the

assessment of the performance of the individual, of the business area

and/or business unit concerned and of the overall results of the

relevant Sampo Group company, the division and/or of Sampo Group. Also

qualitative criteria shall be taken into account in the assessment, such

as the compliance with internal and external rules for the business.

The potential incentive reward will be paid in three installments. The

first installment, based on 30 per cent of the granted incentive units,

will be paid by the end of September 2020, the second installment, based

on 35 per cent of the granted incentive units, will be paid by the end

of September 2021 and the third installment, based on 35 per cent of the

granted units, will be paid by the end of September 2022.

A deferral rule applies to incentive rewards paid to key employees who

are subject to the deferral rule in accordance with the remuneration

policies of the relevant Sampo Group companies in force at the launch of

this incentive schemes. The identified staff shall, when each

installment is paid or at the first possible opportunity, taking into

account the insider regulations, purchase Sampo A shares on a regulated

market or a multilateral trading facility in which the Sampo A share is

publicly traded with 50 per cent of the installment after deducting

income tax and other comparable charges. If a member of the identified

staff is subject to a higher deferral percentage in accordance with

mandatory regulation or the remuneration policy of the relevant Sampo

Group company in force at the time of payment of the installment, the

higher percentage shall be applied to the purchase of the Sampo A

shares. The Sampo A shares shall be subject to disposal restrictions for

three years from the date when the installment was paid.

The incentive rewards to be paid shall be based on the share price

development of the Sampo A share, on the insurance margin in If P&C

Insurance, on the return on capital at risk and on the number of

theoretical incentive units granted. The threshold values for the

performance conditions are presented in the terms and conditions of the

incentive scheme 2017:1 available at www.sampo.com/incentiveterms. The

starting price and a theoretical market price for the scheme are

available at the same address in week 40.

The core of the Remuneration Principles of Sampo Group is that all

remuneration systems in Sampo Group shall safeguard the long-term

financial stability of the Group and shall comply with regulatory and

ethical standards. Risk sensitive but fair and rewarding compensation

mechanisms enhance Sampo Group's ability to create stakeholder and

shareholder value.

SAMPO PLC

Jarmo Salonen

Head of Investor Relations and Group Communications

For further information, please contact:

Jarmo Salonen

Head of Investor Relations and Group Communications

tel. +358 10 516 0030

Maria Silander

Communications Manager

tel. +358 10 516 0031

Distribution:

Nasdaq Helsinki

London Stock Exchange

The principal media

Financial Supervisory Authority

www.sampo.com

This announcement is distributed by Nasdaq Corporate Solutions on behalf

of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely

responsible for the content, accuracy and originality of the information

contained therein.

Source: Sampo Oyj via Globenewswire

http://www.sampo.com

(END) Dow Jones Newswires

September 14, 2017 10:30 ET (14:30 GMT)