WithSecure Corporation's Transparent Governance and Strategic Incentives Signal Long-Term Value Creation

Helsinki, May 23, 2025 — WithSecure Corporation's recent disclosure of a share-based incentive to its Chairman Risto Siilasmaa underscores a critical alignment between executive compensation and shareholder interests. The transaction, announced on May 23, 2025, highlights the company's commitment to governance transparency, while signaling confidence in its long-term strategy. Investors should take note: WithSecure's deliberate use of equity incentives and rigorous disclosure practices are reducing agency risk and positioning the company for sustained growth.

The May 2025 Share Incentive: A Strategic Move

On May 21, 2025, Risto Siilasmaa, Chair of WithSecure's Board since 2006, received 33,891 shares at a unit price of 0.00 EUR, part of a non-cash incentive program. This marks a 16% increase from the 29,125 shares awarded in 2024, reflecting WithSecure's emphasis on retaining leadership talent. Such incentives are not merely financial rewards—they are strategic tools to bind executives' interests to shareholder outcomes. By aligning Siilasmaa's wealth directly with the company's stock performance, WithSecure reduces the risk of short-term decision-making, ensuring leadership prioritizes long-term value creation.

The zero-unit price underscores that these are grants, not purchases, emphasizing the company's willingness to invest in its leadership pipeline. This approach contrasts sharply with opaque compensation structures that often breed distrust.

Governance Practices: A Foundation of Credibility

WithSecure's governance framework is built on proactive transparency, exemplified by its detailed Annual General Meetings (AGMs) and real-time disclosures. The 2025 AGM, held as a hybrid event on March 18, provided shareholders with granular insights into board remuneration policies, strategic investments, and operational priorities. Key elements include:
- Fixed Remuneration Structure: The Chairman's annual fee of EUR 80,000 (40% paid in shares, 60% in cash) has remained unchanged since 2024, demonstrating fiscal discipline.
- Share Component Mechanics: The share portion of remuneration ties board members' rewards to stock performance, incentivizing decisions that bolster shareholder value.
- Open Channels for Inquiry: Investors can directly contact Laura Viita, VP of Controlling and Investor Relations, to access governance documents or clarify AGM outcomes.

This consistency and accessibility foster trust, as stakeholders can verify decisions against clear policies. For instance, the May 2025 share grant was disclosed immediately, adhering to regulatory standards and reinforcing WithSecure's reputation as a governance leader in the cybersecurity sector.

Reducing Agency Risk Through Incentive Alignment

Agency risk—the potential for managers to act against shareholder interests—plagues many corporations. WithSecure mitigates this by:
1. Linking Compensation to Equity: Share-based incentives ensure executives' wealth rises and falls with the company's stock price.
2. Transparent AGM Resolutions: The 2025 AGM reaffirmed board remuneration terms without hidden clauses, avoiding abrupt changes that could signal instability.
3. Public Accountability: All transactions, like Siilasmaa's May grant, are disclosed promptly, eliminating ambiguity.

These practices create a governance environment where management's incentives and investors' goals are seamlessly aligned.

Investment Case: Why Act Now?

WithSecure's transparent governance and strategic incentives form a compelling case for investment. Consider the following:
- Strong Leadership Stability: Siilasmaa's tenure since 2006 and the consistent share incentive increases signal stability and confidence in his vision.
- Sector Tailwinds: As cybersecurity demand surges globally, WithSecure's robust governance positions it to capitalize on growth opportunities.
- Undervalued Equity:

A visual comparison would reveal WithSecure's stock lags behind peers, despite its solid fundamentals. This gap presents an entry opportunity.

Conclusion: A Governance-Driven Opportunity

WithSecure's May 2025 share incentive to Siilasmaa is not an isolated event—it's a continuation of its governance-first ethos. By aligning leadership with shareholders through transparent disclosures and equity incentives, the company is reducing risk and positioning itself for sustained growth. Investors seeking a cybersecurity leader with a proven track record of integrity should act swiftly. WithSecure's stock is poised to reflect its governance excellence, making now the optimal time to build a position.

Risk Disclosure: All investments carry risks, including market volatility and sector-specific challenges.