Remuneration

Supervisory Board

Members of the Supervisory Board have received fees as follows. 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 2013, the Supervisory Board met 5 times. The average attendance rate for members was 78 per cent.

Board of Directors

Members of the Board of Directors have received monthly fees and fees per meetings as follows. 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.

In 2013 the board met 13 times. The average attendance rate for members was 96 per cent.

Audit Committee

In 2013, members of the Audit Committee of the Board of Directors received a fee of EUR 300 per meeting attended.

There were no deputy members of the audit committee.

In 2013 the Audit Committee met 5 times. The average attendance rate for members was 100 per cent.

Managing Director

In the financial year 2013, managing director Jaakko Kangasniemi received taxable income from the company of EUR 195,638. 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 2013.

The managing director’s executive contract, agreed in 2002, was revised in 2012 in relation to pension rights. The retirement age was raised from 60 to 63 years and the pension type changed from defined-benefit to defined-contribution. The annual contribution level is 26.51 per cent of gross annual earnings.

The pension liability is covered partly by the group pension insurance and partly by an annual reserve in the company’s balance sheet. In the financial year ending 31 December 2013 a reserve of EUR 43,364 was made for the pension liability.

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 forewent net pension benefits of EUR 74,308 accrued in earlier years. This loss of pension benefit has been 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 2013 financial year, taxable income received from the company by the Management team, including the managing director and his deputy, totalled EUR 918,714.

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.

In 2013, 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; Minnamari Marttila, Director, Administration; Hanna Skelly, Director; and Associate Directors Mikko Kuuskoski and Antti Urvas.