Tieto establishes a new long-term share-based incentive plan for key personnel


Tieto Corporation STOCK EXCHANGE RELEASE 16 December 2011, 11.00 am EET

The Board of Directors of Tieto Corporation has decided to establish a new share-based incentive plan, a Performance Share Plan, for 20122014.

The plan is a part of the remuneration and commitment programme for key personnel and its purpose is to align the goals of the company's shareholders and management in order to increase the value of the company. It also aims at ensuring the commitment of the key personnel by offering them a competitive, ownership-based reward scheme.

The duration of the plan is three years. The plan contains three annual periods based on EPS (Earnings per Share) measurement and one parallel three-year period based on relative TSR (Total Shareholder Return) measurement. The first performance period will begin on 1 January 2012 and the final performance period will end on 31 December 2014. Individual performance periods are followed by a restriction period of two years for the executive management or one year for the other participants, during which the earned shares are not disposable.

The estimated maximum number of shares of Tieto to be delivered to participants as a reward under the plan is 1.6 million gross shares. In addition to this, the share rewards delivered under the plan will entitle to dividends or the value thereof beginning from the dividend payout in 2013.

The Board of Directors anticipates that share rewards to be delivered to the participants under the plan will consist of shares to be acquired from the market. Thus, no new shares will be issued in connection with the plan and, therefore, the incentive plan will have no dilutive effect. Proposals for authorizing the Board of Directors to acquire own shares from the market and to issue treasury shares based on the plan will be included in the proposals to be made to the Shareholders’ Annual General Meeting of 2012.

The Board of Directors has earlier recommended the Leadership Team and the Extended Leadership Team to invest in the company’s shares an amount corresponding to the executive's one time annual gross base salary. This share ownership guideline continues to be applied and the Board of Directors expects the Leadership Team and the Extended Leadership Team members to use half of the net shares (after tax) received from the new plan for fulfilling the share ownership guideline.

The Board of Directors will nominate the participants for the plan later.

For further information, please contact: Jyrki Ivars, Vice President, HR, Compensation & Benefits, jyrki.ivars(at)tieto.com

TIETO CORPORATION

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NASDAQ OMX Helsinki
NASDAQ OMX Stockholm
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Tieto is the leading IT service company in Northern Europe providing IT and product engineering services. Our highly specialized IT solutions and services complemented by a strong technology platform create tangible business benefits for our local and global customers. As a trusted transformation partner, we are close to our customers and understand their unique needs. With about 18 000 experts, we aim to become a leading service integrator creating the best service experience in IT. www.tieto.com