HELSINKI - Stora Enso (OTC:SEOAY) Oyj, a leader in the bioeconomy sector, has announced the establishment of two new long-term incentive plans aimed at key employees within the company and its subsidiaries. These share-based plans are designed to align the interests of the employees with those of the shareholders, with the ultimate goal of enhancing the company's value over time.
The first of the two plans, the Performance Share Plan 2024–2026, will measure the performance of the participants based on various criteria, including earnings per share, total shareholder return, CO2 emission reduction, and gender diversity. The plan targets approximately 300 key individuals, excluding the President and CEO, who are part of a separate CEO Performance Share Plan detailed in October 2023. Rewards will be allocated after the vesting period's conclusion, with the stipulation that participants must remain employed or in service until the end of the period to receive the rewards. The Board of Directors has also set a cap on the reward amount, which may be adjusted based on the company's share price.
The second plan, the Restricted Share Unit Plan 2024–2026, is directed at key employees and follows a similar structure, with rewards to be paid out after December 31, 2026, contingent upon continued employment or service.
The combined potential rewards for both plans could reach up to 1.6 million Stora Enso R shares, inclusive of a cash portion intended to cover tax and social security obligations of the recipients.
Stora Enso, with sales of EUR 11.7 billion in 2022, is a prominent player in providing renewable products in packaging, biomaterials, wooden construction, and is one of the largest private forest owners globally. The company's shares are listed on Nasdaq Helsinki Oy and Nasdaq Stockholm AB, with additional trades on OTC Markets in the USA.
This news is based on a press release statement from Stora Enso Oyj.
InvestingPro Insights
In light of Stora Enso Oyj's recent initiatives to incentivize key employees through share-based plans, a closer look at the company's financial metrics and analyst expectations provides a comprehensive picture for investors. According to InvestingPro data, Stora Enso has a market capitalization of approximately $10.06 billion, with a P/E ratio standing at 17.67. Despite a challenging environment reflected in a revenue decline of 12.56% over the last twelve months as of Q3 2023, the company has managed to maintain a gross profit margin of 34.72%.
InvestingPro Tips reveal that analysts have recently revised their earnings expectations downwards for the upcoming period, which could be a point of consideration for investors evaluating the potential impact on the company's share performance. On the positive side, Stora Enso has been consistent in rewarding its shareholders, maintaining dividend payments for 27 consecutive years, with a current dividend yield of 4.05%. The company's stock is known for its low price volatility, which may appeal to investors looking for stability.
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