Remuneration of the Executive Team

The Board’s Remuneration and HR Committee decides on the compensation and benefits of the other Executive Team members than President and CEO based on the President and CEO’s proposal and general principles approved by the Board.

The remuneration of the Executive Team members comprises a fixed base salary (including monthly salary and taxable benefits, such as a car and a mobile phone according to local market practice), short-term and long-term incentives and a supplementary pension plan.

Long-term incentive plan, Performance Share Plan 

In December 2020, the Board of Directors of Valmet Oyj approved a long-term share-based incentive plan, the Performance Share Plan, for Valmet's Executive Team members. The plan includes a three-year performance period parallel to a one-year performance period. Valmet's Board of Directors decides on the predefined performance measures and targets in the beginning of each performance period.

The potentially earned share reward represents a gross reward from which the applicable payroll tax is withheld, and the remaining net balance is paid to the key employee in shares.

PERFORMANCE SHARE PLAN

Performance period

2021

2021–2023

2022

2022–2024

Incentive based on

Comparable EBITA as a percentage of net sales, and orders received growth (%) in the stable business (Services and Automation business lines) 

Predefined strategic targets

Comparable EBITA as a percentage of net sales, and orders received growth (%) in the stable business (Services and Automation segments) 

ESG Index, targets linked to implementing Valmet’s Climate Program and Sustainability Agenda

Reward payment

In spring 2022 

In spring 2024 

In spring 2023

In spring 2025

Total gross number of shares earned (Executive Team excl. President and CEO)

124,484 41,403 80,109 26,704

Restriction period

Two years

None

Two years

None

The Performance Share Plan includes a recommendation for the members of Valmet's Executive Team to own and hold an amount of Company shares equaling their gross annual base salary (100 percent ownership recommendation). Management shareholding can be found here.

OTHER REMUNERATION ELEMENTS

Notice period for the Executive Team members is six months for both parties. If the company terminates the agreement, there is an additional severance pay equaling six times the last total monthly salary.

Additional pension benefit in the form of a defined contribution pension plan equaling 15-20% of base salary depending on role.

REMUNERATION IN 2021

 

Fixed Annual Salary (incl. taxable benefits)

2021 bonus payment

Share-based incentive payment

Supplementary pension

Total compensation

Executive Team,
EUR

2,979,725

1,111,370

1,580,987

653,528

6,325,610

 

 

More information on management remuneration can be found in Valmet's Remuneration Policy and Remuneration Report.