Nokia 2013 Annual Report Download - page 132

NOKIA IN 2013
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Beneath the executive and director levels restricted shares
were used on a selective basis to ensure retention and recruit-
ment of individuals with functional mastery and other employ-
ees deemed critical to Nokia’s future success.
All of our restricted share plans have a restriction period of
three years after grant. Until the shares are delivered, the par-
ticipants will not have any shareholder rights, such as voting
or dividend rights, associated with the restricted shares. The
restricted share grants are generally forfeited if the employ-
ment relationship terminates with Nokia prior to vesting.
Employee share purchase plan
During , Nokia launched for the fi rst time an Employee
Share Purchase Plan (so called Share in Success). Under the
Employee Share Purchase Plan, eligible Nokia employees could
elect to make monthly contributions from their salary to
purchase Nokia shares. The contribution per employee cannot
exceed EUR   per year. The share purchases are made at
market value on pre-determined dates on a monthly basis dur-
ing a -month savings period. Nokia will off er one matching
share for every two purchased shares the employee still holds
after the last monthly purchase has been made in June .
In addition,  free shares were delivered to employees who
made the fi rst three consecutive monthly share purchases.
The participation in the plan was voluntary to the employees.
Nokia equity-based incentive program 2014
On February , , the Board of Directors approved the
scope and design of the Nokia Equity Program . The Board
of Directors decided not to propose stock options for the 
Annual General Meeting. Similarly to the earlier equity incen-
tive programs, the Equity Program  is designed to support
the participants’ focus and alignment with Nokia’s long term
success. Nokia’s use of the performance-based plan as the
main long-term incentive vehicles is planned to eff ectively con-
tribute to the long-term value creation and sustainability of
the company and to align the interests of the employees with
those of the shareholders. It is also designed to ensure that
the overall equity-based compensation is based on perfor-
mance, while also ensuring the recruitment and retention of
talent vital to the future success of Nokia. Shares under the
Nokia Restricted Share Plan  are intended to be granted
only for exceptional retention and recruitment purposes as
to ensure Nokia is able to retain and recruit talent vital to the
future success of the group. In addition, the Employee Share
Purchase Plan continues to be off ered to encourage employee
share ownership, commitment and engagement.
The primary equity instruments for the executive em-
ployees and directors below executive level are performance
shares. Below the director level, performance shares are used
on a selective basis to ensure retention and recruitment of
individuals with functional mastery and other employees
deemed critical to Nokia’s future success. These equity-based
incentive awards are generally forfeited if the employee leaves
Nokia prior to vesting. Shares under Nokia Restricted Share
Plan  are intended to be granted only for exceptional
retention and recruitment purposes as to ensure Nokia is able
to retain and recruit talent vital to the future success of the
group. The Employee Share Purchase Plan will be off ered to all
employees in selected jurisdictions (excluding Networks’ em-
ployees for ), to the extent there are no local regulatory or
administrative obstacles for the off er. The participation in the
plan will be voluntary to eligible employees.
Performance shares
The Nokia Performance Share Plan  has a two-year perfor-
mance period ( through ) and a subsequent one-year
restriction period. Therefore, the amount of shares based on
the fi nancial performance during  –  will vest after
. The performance criteria for the performance period are
as follows:
For Nokia Group employees (excluding HERE employees):
■ Nokia Group average annual non-IFRS net sales
■ Nokia Group average annual non-IFRS EPS
For HERE employees:
■ Nokia Group average annual non-IFRS EPS
■ HERE average annual non-IFRS net sales
■ HERE average annual non-IFRS operating profi t
The number of shares to be settled after the restriction
period will start at % of the granted amount and any payout
beyond this will be determined with reference to the fi nancial
performance against the established performance criteria
during the two-year performance period.
The threshold and maximum levels for the Nokia
Performance Share Plan  are as follows: