Remuneration

Supervisory Board

Until the Annual General Meeting on 20 April 2012, the chair of the Supervisory Board received a monthly fee of EUR 1,000, the deputy chair a monthly fee of EUR 600, and the other members a monthly fee of EUR 500. In addition, all members received a fee of EUR 200 for each meeting attended.

With effect from the Annual General Meeting, the chair of the Supervisory Board received EUR 800 per meeting, the deputy chair EUR 600 per meeting and other members EUR 500 per meeting.

 

 

In 2012, the Supervisory Board met 5 times.

The average attendance rate for members was 90.6 per cent.

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Board of Directors

Until the Annual General Meeting on 20 April 2012, the chair of the Board of Directors received a monthly fee of EUR 1,000, the deputy chair a monthly fee of EUR 600, and the other members a monthly fee of EUR 500. In addition, all members received a fee of EUR 200 per meeting attended.

With effect from the Annual General Meeting, the chair of the Board of Directors received a monthly fee of EUR 1,100, the deputy chair a monthly fee of EUR 700, and the other members a monthly fee of EUR 600. In addition, all members received a fee of EUR 300 per meeting attended.

 

 

There were no deputy board members.

In 2012 the board met 13 times. The average attendance rate for members was 95.7 per cent.

Audit Committee

In 2012, members of the Audit Committee of the Board of Directors received a fee of EUR per meeting attended.

 

There were no deputy members of the audit committee.

In 2012 the Audit Committee met 4 times. The average attendance rate for members was 100 per cent.

Managing director

In the financial year 2012, managing director Jaakko Kangasniemi received taxable income from the company of EUR 175,533. The remuneration of the managing director consists of a fully fixed monthly salary. The managing director is not subject to the company’s incentive system and was not paid a bonus in the financial year 2012.

The managing director’s executive contract, agreed in 2002, has been revised in relation to pension rights. The retirement age has been raised from 60 to 63 years and the pension type has been changed from defined-benefit to defined-contribution. The annual contribution level is 26.51 per cent of gross annual earnings

The pension liability will be covered partly by the existing group pension insurance and partly by an annual reserve in the company’s balance sheet. In the financial year ending 31 December 2012 a reserve of EUR 18,753 was made for the pension liability.

For 2013 and subsequent years, a reserve will be made in the accounts which, together with the group pension insurance contribution, is 26.51 per cent of the managing director’s gross annual earnings.

From 2012 the managing director has no longer been paid separate compensation based on previous contracts, which has been taken into account in the reserve made in the financial statement of 31 December 2012.

The company may terminate the managing director’s employment at six months’ notice. Upon termination by the company, in addition to the salary for the term of notice, the managing director will receive an amount equal to six months’ salary.

Because of the pension benefit change in the executive contract, the managing director has foregone net pension benefits of EUR 74,308.00 accrued in earlier years. This loss of pension benefit is being counterbalanced by raising his gross monthly wage with effect from 1 January 2013 by EUR 1,347 which will provide full compensation by the time he reaches the age of 63.

If his employment ends before the age of 63 years, the company will pay him the amount of pension benefit lost through early termination of the contract. This compensation will be paid regardless of the reason for termination of contract and in addition to other entitlements under the law or his executive contract.

Management team

In the 2012 financial year, taxable income received from the company by the Management team, including the managing director and his deputy, totalled EUR 880,244.

The members of the Management team, with the exception of the managing director, are included in the incentive system covering all the company’s personnel, according to which employees can receive an incentive corresponding to, at most, one month’s salary if the targets set are met. The incentive system is based in part on the company’s performance and partly on the team level performance. The Board of Directors decides on the incentive system and its key criteria on an annual basis.

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In 2012, the members of the Management Team were Jaakko Kangasniemi, Managing Director, CEO; Jukka Ahmala, Director, Legal Affairs and Alternate to the Managing Director; Helena Arlander, Director, Portfolio and Risk Management; Jyrki Halttunen, Treasurer (until 30 October); Minnamari Marttila, Director, Administration; Hanna Skelly, Associate Director; Mikko Kuuskoski, Associate Director (as of 1 June); and Antti Urvas, Associate Director (as of 1 June).