Nokia 2015 Annual Report Download - page 166

164 NOKIA IN 2015
Notes to consolidated nancial statements continued
Global performance share plans at December 31:
Plan
Performance shares
outstanding at threshold
Confirmed payout
(% of threshold) Performance period Restriction period(1) Settlement year
2012 –0%, no settlement 2012-2013 2014 2015
2013 569 829 173% 2013-2014 2015 2016
2014 5 282 838 251% 2014-2015 2016 2017
2015 5 611 758 2015-2016 2017 2018
(1) Restriction period ends on the rst day of the year following the restriction period.
Performance criteria for the year ended December 31:
Performance criteria Threshold performance Maximum performance Weight
2015 Plan
Nokia Group employees Average annual non-IFRS(1) net sales (Nokia Group) EURm12 389 EURm14 736 50%
Average annual diluted non-IFRS(1) EPS (Nokia Group) EUR0.23 EUR0.37 50%
HERE employees(2) Average annual non-IFRS(1) net sales (HERE) EURm954 EURm1 134 50%
Average annual non-IFRS(1) operating prot (HERE) EURm67 EURm172 25%
Average annual diluted non-IFRS(1) EPS (Nokia Group) EUR0.23 EUR0.37 25%
2014 Plan
Nokia Group employees Average annual non-IFRS(1) net sales (Nokia Group) EURm11 135 EURm15 065 50%
Average annual diluted non-IFRS(1) EPS (Nokia Group) EUR0.11 EUR0.38 50%
HERE employees(2) Average annual non-IFRS(1) net sales (HERE) EURm950 EURm1 150 50%
Average annual non-IFRS(1) operating prot (HERE) EURm0 EURm130 25%
Average annual diluted non-IFRS(1) EPS (Nokia Group) EUR0.11 EUR0.38 25%
(1) Non-IFRS measures exclude goodwill impairment charges, intangible asset amortization and items related to purchase price allocation, as well as restructuring-related costs, costs related to the Alcatel
Lucent transaction and certain other items that may not be indicative of the Group’s underlying business.
(2) In 2015, Performance Share Plans for HERE employees were forfeited as a result of the Sale of the HERE Business.
Until the shares are delivered, the participants do not have any shareholder rights, such as voting or dividend rights, associated with the
performance shares. The performance share grants are generally forfeited if the employment relationship with the Group terminates prior
tovesting. Unvested performance shares for employees transferred with the Sale of the HERE Business in 2015 and for employees who were
transferred to Microsoft following the Sale of the D&S Business in 2014 have been forfeited.
Restricted shares
In 2015, the Group administered four global restricted share plans: the Restricted Share Plan 2012, 2013, 2014 and 2015. The Restricted Share
Plan 2015 introduced a new vesting schedule for the 2015 Plan year as well as any future plans. The vesting schedule for plans prior to the 2015
Plan was 36 months following the grant quarter. The new vesting schedule for the 2015 Plan introduces tranche vesting with one third of
granted instruments vesting in each of the plan’s 3-year duration. Restricted shares are granted for exceptional retention and recruitment
purposes to ensure the Group is able to retain and recruit talent critical to its future success. Until the shares are delivered, the participants
do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 employment relationship with the Group terminates prior to vesting. Unvested restricted shares for employees
transferred with the Sale of the HERE Business in 2015 and employees that were transferred to Microsoft following the Sale of the D&S Business
in 2014 have been forfeited.