Norsk Hydro: Primary insiders have been allocated shares under the Long-Term Incentive program

Rhea-AI Summary

Norsk Hydro ASA announced its Long-Term Incentive (LTI) program, which offers up to 30% of the annual base salary for key executives, contingent on performance metrics. The metrics include a three-year average adjusted Return on Capital Employed (RoaCE) relative to targets and Total Shareholder Return (TSR) compared to peers. To qualify, Hydro must have a positive adjusted EBITDA from the previous year. Participants must reinvest their net payment into Hydro shares, holding them for at least three years. Allocated shares include 1,528 for Helena Nonka and 3,838 for Paul Warton at a price of NOK 88.03.

Positive

• Long-Term Incentive program aligns executive compensation with performance.
• Potential for increased executive motivation to improve company performance metrics.

Negative

• LTI payment is conditional on positive adjusted EBITDA, indicating financial performance risks.
• The requirement to hold shares for three years may limit liquidity for executives.

Norsk Hydro ASA has a share-based Long-Term Incentive program (“LTI”) in the form of a maximum remuneration of 30 percent of the annual base salary, dependent on two equally weighted performance metrics for the President and CEO and the other members of the Corporate Management Board. The two performance measures are 1) Hydro’s three-year average adjusted RoaCE relative to Hydro’s adjusted RoaCE target and 2) Hydro’s three-year Total Shareholder Return (TSR) relative to a basket of peers. The LTI payment is conditional on Hydro having a positive adjusted EBITDA in the previous year. The participants will be required to invest the net amount after tax in Hydro shares, and they must hold the shares for at least three years.

The list below sets out the primary insiders that on May 6, 2022, have been allocated Hydro shares under the LTI plan at NOK 88.03 per share.

Name	Allocated shares LTI plan	New holding
Executive Vice President Corporate Development Helena Nonka	1 528	1 528
Executive Vice President Hydro Extrusions Paul Warton	3 838	3 838

Investor contact:
Line Haugetraa
+47 41406376
Line.Haugetraa@hydro.com

Press contact:
Halvor Molland
+47 92979797
Halvor.Molland@hydro.com

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachments

• KRT-1500 - Paul Warton
• KRT-1500 - Helena Nonka

FAQ

What is the Long-Term Incentive program for Norsk Hydro (NHYDY)?

The Long-Term Incentive program offers up to 30% of annual base salary based on performance metrics.

What performance metrics are used in Norsk Hydro's LTI program?

The metrics include adjusted Return on Capital Employed (RoaCE) and Total Shareholder Return (TSR) against peers.

What is the share allocation price for executives under the LTI program for Norsk Hydro (NHYDY)?

The allocated shares under the LTI program are priced at NOK 88.03.

Are executives required to hold their shares under the LTI program for Norsk Hydro (NHYDY)?

Yes, participants must hold the shares for at least three years.

What conditions must Norsk Hydro meet for LTI payments?

Hydro must have a positive adjusted EBITDA from the previous year.