Remuneration of the other Suominen Leadership Team members
Decision-making procedure concerning remuneration
The Personnel and Remuneration Committee of the Board of Directors of Suominen prepares the remuneration matters concerning the company’s Leadership Team. The Personnel and Remuneration Committee continuously evaluates the appropriateness of their remuneration by assessing how their remuneration is positioned compared to the market and ensuring the remuneration is aligned with the company strategy and shareholders’ interests.
The Personnel and Remuneration Committee does not have independent decision-making power unless the Board of Directors resolves otherwise on individual matters. The Board of Directors determines the salary, bonuses and other benefits paid to the Suominen Leadership Team members. The General Meeting or the Board of Directors authorized by the General Meeting decides on the issue of shares, stock options or other special rights entitling to shares to the Suominen Leadership Team members. The Suominen Leadership Team members are not involved in the decision-making regarding their own remuneration.
Main principles of remuneration
Suominen strives to have a remuneration system that incentivizes to pursue towards the company’s long-term financial performance and shareholder value creation. The company aims to offer remuneration that attracts, motivates and retains the best possible executives who drive Suominen’s performance and strategy in alignment with essential stakeholder interests. The goal is to ensure that the philosophy of paying for performance is applied to Suominen’s remuneration.
The current remuneration of the other members of the Suominen Leadership Team consists of a fixed monthly salary and benefits, a performance-based bonus (short-term remuneration), and of share-based incentive plans (long-term remuneration). The remuneration system described above concerning the President & CEO applies also to the other members of the Suominen Leadership Team, with the following exceptions:
- Short-term remuneration: For the financial year 2026, the potential reward is based on the following KPIs: Group EBITDA, Group Operative Cash Flow (MEUR), ESG Target Group Raw Material Efficiency (%) and certain personal targets, and it may not exceed 50% of the annual base salary.
- Long-term remuneration through the Performance Share Plans: The potential rewards for other members of the Suominen Leadership Team correspond to the value of approximately maximum of 67 000 shares from Performance Period 2024–2026 and a maximum between 80 000 – 120 000 shares from Performance Period 2025–2027 and a maximum between 80 000 – 120 000 shares from Performance Period 2026-2028. Maximum total of shares includes also the proportion to be paid in cash. A member of the Suominen Leadership Team must hold 50% of the net number of shares given on the basis of the Performance Share Plan, as long as his or her shareholding in total corresponds to the value of half of his or her annual gross salary. One Leadership Team Member is also included in Restricted Share Unit Plan (RSUP) 2026–2028 with 50 000 shares.
- For other members of the Suominen Leadership Team, the notice period is up to 6 months should either the company or the Suominen Leadership Team member terminate the contract. Should the company terminate the employment, executives are entitled to a severance pay corresponding up to 3 months’ salary.
- Except for one Suominen Leadership Team member, the other executives are not covered by any special supplementary insurance schemes.
Remuneration paid in the financial year 2025
The salaries and benefits paid to the other members of the Leadership Team during 2025 totaled EUR 1 288 111, including benefits of EUR 45 169.
From 2025 the members of the Leadership Team, did not receive any Short Term Bonuses or remuneration from the Performance Share Plan. In 2025 one Leadership Team member received a cash bonus from Performance Share Plan 2022-2024, totaling EUR 1253.