Stora Enso's Strategic Moves: A New Board and Incentive Plans for Growth
December 12, 2024, 5:38 pm
Stora Enso Oyj is making waves in the corporate world. The Finnish-Swedish company, a titan in renewable materials, is gearing up for its Annual General Meeting (AGM) in March 2025. The Shareholders’ Nomination Board has put forth proposals that could reshape its Board of Directors. This move is not just about names on a list; it’s about steering the company into a future where sustainability and innovation reign supreme.
The proposed board will consist of nine members. Among the current members, seven are set for re-election. New faces, Elena Scaltritti and Antti Vasara, are also on the horizon. Scaltritti brings a wealth of experience from the chemical and technology sectors, while Vasara boasts a strong background in technology and telecommunications. Their expertise could be the fuel that powers Stora Enso’s ambitions in the renewable sector.
Kari Jordan is poised to take the helm as Chair, with Håkan Buskhe as Vice Chair. This leadership duo is expected to guide the company through its next chapter. The departure of Elisabeth Fleuriot, a long-standing board member, marks the end of an era. Her contributions since 2013 have been significant, but the new board members are expected to inject fresh perspectives.
The Shareholders’ Nomination Board operates under a Nordic governance model. This separation from the Board of Directors ensures that the selection process is rigorous and transparent. The focus is on creating a board that not only meets regulatory requirements but also embodies the expertise needed for Stora Enso’s strategic goals.
In tandem with board changes, Stora Enso is launching two new long-term incentive plans aimed at key employees. These plans are designed to align the interests of employees with those of shareholders. The goal? To enhance the company’s value over the long haul. Approximately 300 employees will be eligible, with a maximum opportunity of €20 million.
The Performance Share Plan 2025–2027 is a centerpiece of this initiative. It focuses on key performance indicators like earnings per share, total shareholder return, CO2 emission reduction, and gender balance in management. This multifaceted approach not only incentivizes financial performance but also emphasizes sustainability and diversity—two pillars of modern corporate responsibility.
The Restricted Share Unit Plan 2025–2027 complements the performance plan. It rewards key employees for their loyalty and contributions over a set period. Both plans are structured to ensure that rewards are meaningful and tied to the company’s success. If an employee leaves before the end of the performance period, they forfeit their rewards. This creates a strong incentive to stay and contribute to Stora Enso’s growth.
Stora Enso is not just a company; it’s a player in the global bioeconomy. With a focus on renewable products in packaging, biomaterials, and wooden construction, it stands as one of the largest private forest owners worldwide. The company’s commitment to sustainability is evident in its product offerings, which aim to meet the rising demand for eco-friendly solutions.
In 2023, Stora Enso reported sales of €9.4 billion. This impressive figure underscores the company’s position in the market. Its shares are traded on multiple exchanges, including Nasdaq Helsinki and Nasdaq Stockholm, as well as in the U.S. as American Depository Receipts (ADRs). This broad market presence enhances its visibility and appeal to investors.
The proposed changes to the Board of Directors and the introduction of new incentive plans signal a proactive approach to governance and employee engagement. Stora Enso is positioning itself to tackle the challenges of the future head-on. The emphasis on sustainability, innovation, and strong leadership is a recipe for success in today’s competitive landscape.
As the AGM approaches, shareholders will have the opportunity to weigh in on these proposals. Their decisions will shape the future of Stora Enso. The company is at a crossroads, and the choices made now will echo for years to come.
In conclusion, Stora Enso is not merely adjusting its board and incentive structures; it is laying the groundwork for a sustainable future. The integration of experienced leaders and a focus on performance-driven incentives reflect a commitment to excellence. As the company navigates the complexities of the renewable materials market, it is poised to emerge as a leader in the bioeconomy. The journey ahead is filled with potential, and Stora Enso is ready to seize it.
The proposed board will consist of nine members. Among the current members, seven are set for re-election. New faces, Elena Scaltritti and Antti Vasara, are also on the horizon. Scaltritti brings a wealth of experience from the chemical and technology sectors, while Vasara boasts a strong background in technology and telecommunications. Their expertise could be the fuel that powers Stora Enso’s ambitions in the renewable sector.
Kari Jordan is poised to take the helm as Chair, with Håkan Buskhe as Vice Chair. This leadership duo is expected to guide the company through its next chapter. The departure of Elisabeth Fleuriot, a long-standing board member, marks the end of an era. Her contributions since 2013 have been significant, but the new board members are expected to inject fresh perspectives.
The Shareholders’ Nomination Board operates under a Nordic governance model. This separation from the Board of Directors ensures that the selection process is rigorous and transparent. The focus is on creating a board that not only meets regulatory requirements but also embodies the expertise needed for Stora Enso’s strategic goals.
In tandem with board changes, Stora Enso is launching two new long-term incentive plans aimed at key employees. These plans are designed to align the interests of employees with those of shareholders. The goal? To enhance the company’s value over the long haul. Approximately 300 employees will be eligible, with a maximum opportunity of €20 million.
The Performance Share Plan 2025–2027 is a centerpiece of this initiative. It focuses on key performance indicators like earnings per share, total shareholder return, CO2 emission reduction, and gender balance in management. This multifaceted approach not only incentivizes financial performance but also emphasizes sustainability and diversity—two pillars of modern corporate responsibility.
The Restricted Share Unit Plan 2025–2027 complements the performance plan. It rewards key employees for their loyalty and contributions over a set period. Both plans are structured to ensure that rewards are meaningful and tied to the company’s success. If an employee leaves before the end of the performance period, they forfeit their rewards. This creates a strong incentive to stay and contribute to Stora Enso’s growth.
Stora Enso is not just a company; it’s a player in the global bioeconomy. With a focus on renewable products in packaging, biomaterials, and wooden construction, it stands as one of the largest private forest owners worldwide. The company’s commitment to sustainability is evident in its product offerings, which aim to meet the rising demand for eco-friendly solutions.
In 2023, Stora Enso reported sales of €9.4 billion. This impressive figure underscores the company’s position in the market. Its shares are traded on multiple exchanges, including Nasdaq Helsinki and Nasdaq Stockholm, as well as in the U.S. as American Depository Receipts (ADRs). This broad market presence enhances its visibility and appeal to investors.
The proposed changes to the Board of Directors and the introduction of new incentive plans signal a proactive approach to governance and employee engagement. Stora Enso is positioning itself to tackle the challenges of the future head-on. The emphasis on sustainability, innovation, and strong leadership is a recipe for success in today’s competitive landscape.
As the AGM approaches, shareholders will have the opportunity to weigh in on these proposals. Their decisions will shape the future of Stora Enso. The company is at a crossroads, and the choices made now will echo for years to come.
In conclusion, Stora Enso is not merely adjusting its board and incentive structures; it is laying the groundwork for a sustainable future. The integration of experienced leaders and a focus on performance-driven incentives reflect a commitment to excellence. As the company navigates the complexities of the renewable materials market, it is poised to emerge as a leader in the bioeconomy. The journey ahead is filled with potential, and Stora Enso is ready to seize it.