Remuneration of the President & CEO
The current remuneration of the President & CEO consists of a fixed base salary and benefits, performance-based bonus (short-term remuneration) and share-based incentive plans (long-term remuneration).
Base salary and benefits
Current monthly base salary for the President & CEO is EUR 38,500 and monthly value of benefits EUR 20. These include typical benefits such as telephone (possibility to a company car). Additionally, he has a health insurance.
Suominen applies an annual bonus scheme based on the principles approved by the Board of Directors in advance for one year at a time. For the financial year 2023, the President & CEO’s potential reward from the period is based on Group’s common financial targets (weight 80%) and certain personal targets (weight 20%), and it may not exceed 60% of the annual base salary.
Performance Share Plan
The President & CEO is a participant in the Company's Performance Share Plan, Performance Period 2023-2025. The potential reward of the Plan is based on the Relative Total Shareholder Return (TSR). The potential reward for the President & CEO to be paid correspond to the value of an approximate maximum total of 168,500 shares from Performance Period 2023-2025. Maximum total of shares includes also the proportion to be paid in cash. The Plan includes a share price cap mechanism, which cuts the reward if the limits set by the Board of Directors for the share price are reached.
The potential rewards from the Performance Period 2023-2025 will be paid partly in the Company’s shares and partly in cash in 2026. The cash proportion is intended to cover taxes and tax-related costs arising from the reward to the participant. As a rule, no reward will be paid, if a participant’s employment or service ends before the reward payment. The President & CEO must hold 50% of the net number of shares given on the basis of the plan, as long as his or her shareholding in total corresponds to the value of his or her annual gross salary. Such number of shares must be held as long as his or her employment or service in a group company continues.
Term of notice and severance pay
According to the written contract made with the President & CEO, the period of notice is six months should either the Company or the President & CEO terminate the contract. Should the Company terminate the President & CEO’s contract, severance pay corresponding to 12 months’ salary shall be paid. The President & CEO has no specific contract related to the termination of his contract due to a public tender offer.
Updated on September 18, 2023