Remuneration of the President and CEO

The Board of Directors decides on the remuneration, benefits and other terms of employment of the President and CEO based on the preparatory work by the Remuneration and HR Committee and according to the guidelines set forth in the Remuneration Policy presented to the General Meeting. External market data is used to support the process. The Board determines the total remuneration elements of the President and CEO based on market benchmarking and other relevant facts.

The remuneration of the President and CEO is comprised of the fixed base salary (incl. taxable benefits, such as a car and a mobile phone, according to the local legislation and market practice), short- and long-term incentives, pension benefits and customary insurances. The fixed annual salary of the President and CEO in 2021 was EUR 697,106. The relative proportion of the variable pay elements of the President and CEO at maximum level is 2–3 times the fixed pay.

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 number of shares

 

53,668

 

 

Restriction period

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

Additional pension benefit in the form of a defined contribution pension plan, 20% of base salary.

Severance pay (if the company terminates the agreement) equals to six months’ notice period plus severance pay corresponding to the last total monthly salary multiplied by 18.

 

 

More information on remuneration of the President and CEO can be found in Valmet's Remuneration Policy and Remuneration Report.

Updated; May 12, 2022