Principles for the remuneration
Decision-making process in the remuneration of CEO and other executives
The Board’s Remuneration Committee prepares, e.g., matters concerning the salaries and other financial benefits of CEO and his immediate subordinates, and the Board decides on these matters. Furthermore, the Committee prepares issues related to the management’s incentive and reward schemes to be decided by the Board.
Share-based incentive and reward schemes may require an express decision from the General Meeting unless the Board has been authorised by the General Meeting to decide on them.
Main principles for the remuneration of CEO and other executives
Raisio’s policy is to provide its personnel compensation that is competitive in each country and business area. The company regularly reviews market salaries and the development of incentive schemes, regarding both CEO and other executives, in order to maintain its competitiveness.
In 2016, Raisio had separate incentive schemes for CEO, management, middle management and other personnel. CEO’s incentive scheme is based on the achievement of performance target (EBT, earnings before taxes). The incentive scheme concerning other management (Management Team) is based on the achievement of EBIT target; either EBIT of the Group or that of the Division as a criterion. CEO’s annual bonus is not more than 80% of the annual remuneration and for other management, it is a maximum of 50 or 60% of the annual remuneration. The achievement of bonus targets in the schemes of CEO and other executives is assessed after the financial year has completely ended, and a possible bonus is paid in cash by the end of March of the year following the financial year.
CEO and Management Team members are all within the share-based incentive schemes of the Group's key personnel (the share-based schemes 2014 - 2016, 2015 - 2017, 2016 - 2018 and 2017 - 2019).
The pension of CEO and Management Team members is determined according to the Finnish employment pension scheme TyEl; they are all covered by the group pension insurance scheme of the Raisio Group’s management. A sum equivalent to 15 per cent of the CEO’s and manager’s basic annual salary is paid into the group pension insurance every year, with the exception of one foreign member whose share is 20 per cent of his basic annual salary.
The retirement age of CEO and Management Team members is 62 years.