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 total salary (monthly base salary and customary fringe 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 2020 is EUR 680,104. 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

Performance period

2020

Incentive based on

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

Potential reward payment

Will be paid partly in Valmet shares and partly in cash in spring 2021

Total number of shares

Maximum of 42,800 shares (130% of the base salary)

Restriction period

2 years

Short-term incentive

Performance period

2020

Incentive based on

Comparable EBITA development of the company, and strategic targets decided by the Board of Directors

Maximum reward

100% of base salary

Potential reward payment

Will be paid in March 2021

Other remuneration elements

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

Updated; Aug 6, 2020