Finnair Oyj — Board/Management Information 2021

Jan 26, 2021

Finnair's Board of Directors decided on a new period for the long-term incentive scheme for key personnel

Finnair's Board of Directors decided on a new period for the long-term incentive scheme for key personnel

Finnair Plc                  Stock Exchange Release                 26 January
2021 at 10.00 a.m. EET

Performance-based incentive plan for key personnel

The Board of Directors of Finnair has, as part of the existing long-term
incentive scheme structure, approved a new individual performance share plan
period covering the years 2021–2023. Within the plan, the participants have the
opportunity to earn Finnair shares as a long-term incentive reward, if the
performance targets set by the Board of Directors for the plan are achieved. The
purpose of the arrangement is to motivate the management to work for increasing
the shareholder value in the long-term and to commit the management to the
company.

The annually commencing performance share plans include a three-year performance
period. The potential share rewards will be delivered to the participants in one
tranche after the performance period and they are at the participants’ free
disposal after delivery. The potential share rewards will be delivered to the
participants in the spring 2024. The performance criteria applied to the plan
2021–2023 are earnings per share, unit cost CASK (using constant currencies and
fuel price) and CO2 emissions (fuel efficiency).

If the targets set for the plan for years 2021–2023 are fully achieved, the
maximum number of shares to be delivered based on this plan is approximately
8,100,000 shares. This number of shares represents a gross earning, from which
the payroll tax is deducted, and the remaining net value is delivered to the
participants in shares.

The members of Finnair’s Executive Board are expected to retain at least fifty
per cent 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 hundred and twenty per cent of the
participant’s annual gross base salary.

The number of employees eligible to participate in the plan 2021–2023 is
approximately 70 persons.

The Board of Directors anticipates that no new shares will be issued in
connection with the share-based incentive plans and that therefore the
arrangement will have no dilutive effect on the registered number of the
company’s shares.

FINNAIR PLC
Further information:
Finnair communications, 358 9 818 4020, comms@finnair.com

Distribution:
NASDAQ OMX Helsinki
Principal media

Finnair is a modern premium network airline, specialising in passenger and cargo
traffic between Asia and Europe. Helsinki’s geographical location gives Finnair
a competitive advantage, since the fastest connections between many European
destinations and Asian megacities fly over Finland. Finnair is the only Nordic
network carrier with a 4-star Skytrax ranking and a member of the oneworld
alliance. In 2019, Finnair’s revenues amounted to EUR 3,098 million and it
carried over 14.7 million passengers. Finnair Plc’s shares are quoted on the
Nasdaq Helsinki stock exchange.