Long Term Incentive Program

Telia Company offers a long-term incentive (LTI) program for key employees. The program is not available for members of Group Executive Management.

The Annual General Meeting on 6 April 2022 resolved to launch a long-term incentive program, LTI Program 2022/2025.

  • Maximum number of participants is approximately 250
  • The reward is share based
  • Maximum number of performance shares an individual can receive corresponds to 30% of annual base salary
  • The maximum value of the award is capped at 60% of annual base salary
  • The program measures performance over a three-year period, 2022-2024
  • No initial investment required by the participant
  • KPI:s are Cashflow, Total Shareholder Return (TSR) compared to a corresponding TSR development of a pre-defined peer group of companies, Return on Capital Employed (ROCE) and an Environmental, Social and Governance target (ESG).
  • The Cashflow part represents 25 percent of the total award (or 7.5 percent of the participant’s annual salary):
    • If 100 percent (or above) of the Company’s Cashflow target is met, 100 percent of Performance Shares under the Cashflow part will vest.
    • If less than 90 percent of the Company’s Cashflow target is met, no Performance Shares under the Cashflow part will vest.
    • If 90 percent of the Company’s Cashflow target is met, 25 percent of Performance shares under the Cashflow part will vest.
    • If between 90 to 100 percent of the Company’s Cashflow target is met, a proportionate amount of Performance Shares under the Cashflow part will vest.
  • The TSR part represents 40 percent of the total award (or 12 percent of the participant’s annual salary):
    • If the Company’s TSR is ranked first or second compared to the defined peer group of companies, 100 percent of the Performance Shares under the TSR part will vest.
    • If the Company’s TSR is ranked third of fourth, 75 percent of the Performance Shares under the TSR part will vest.
    • If the Company’s TSR is ranked fifth or sixth, 50 percent of the Performance Shares under the TSR part will vest.
    • If the Company’s TSR is ranked seventh, 25 percent of the Performance Shares under the TSR part will vest.
    • If the Company’s TSR is ranked eight or lower, no Performance Shares under the TSR part will vest.
  • The ROCE part represents 20 percent of the total award (or 6 percent of the participant’s annual salary):
    • If 100 percent (or above) of the Company’s ROCE target is met, 100 percent of Performance Shares under the ROCE part will vest.
    • If less than 90 percent of the Company’s ROCE target is met, no Performance Shares under the ROCE part will vest.
    • If 90 percent of the ROCE target is met, 25 percent of the Performance Shares under the ROCE Part will vest.
    • If between 90 to 100 percent of the ROCE target is met, a proportionate amount of Performance Shares under the ROCE Part will vest.
  • The ESG part represents 15 percent (or 4.5 percent or the participant’s annual salary):
    • If 100 percent (or above) of the ESG target is met, 100 percent of Performance Shares under the ESG part will vest.
    • If the minimum level is not reached, no Performance Shares under the ESG part will vest.
    • If the minimum level is reached, 25 percent of Performance shares under the ESG part will vest.
    • If between the minimum level and 100 percent of the ESG target is met, a proportionate amount of Performance Shares under the ESG part will vest.

The defined peer group include Telenor ASA, Elisa Oyj, Tele2 AB, KPN NV, Orange SA, Deutsche Telekom AG, Vodafone Group Plc, Telefonica SA, Proximus PLC and Swisscom AG.

Long-Term Incentive Program, Outcome

Below is the outcome for each completed program.

  • LTI Program 2010/2013 = 4.33% (of maximum 30%)
  • LTI Program 2011/2014 = 6.25% (of maximum 30%)
  • LTI Program 2012/2015 = 13.13% (of maximum 30%)
  • LTI Program 2013/2016 = 5.63% (of maximum 30%)
  • LTI Program 2014/2017 = 4.20% (of maximum 30%)
  • LTI Program 2015/2018 = 15% (of maximum 30%)
  • LTI Program 2016/2019 = 25.25% (of maximum 30%)
  • LTI Program 2017/2020 = 7.50% (of maximum 30%)
  • LTI Program 2018/2021 = 11.25% (of maximum 30%)
  • LTI Program 2019/2022 = 7.50% (of maximum 30%)