The company’s management remuneration consists of base salary and benefits, short term incentives and share-based long term incentives under the company’s Performance Share Plan and Deferred Bonus Plan.
The Remuneration Committee follows the remuneration market trends at regular intervals and reviews the various components of the management remuneration annually. The review includes benchmarking the different remuneration components to market practices in correspondingpositions in peer companies. Based on this review, the committee makes recommendationsto the Board for the approval of salaries and benefits of the President and CEO and other senior executives.
Related to the company’s short and long term incentive plans, the committee reviews the plans annually and makes recommendations for the structure, measures and targets of the short term incentive plan, and for the earning criteria and targets of the plans starting annually under the company’s long term incentive plans. Each year, the committee also evaluates the achievement of the set targets and the overall performance of the President and CEO and other senior executives, andmakes recommendations to the Board for the approval of incentive pay-outs, if any.
In addition, the committee annually reviews the achievement of and compliance with the company’s share ownership recommendation set for the senior executives as well as succession plans for the President and CEO and other senior executives, and reports to the Board on such matters. The committee is also informed of the results of the employee engagement survey which is conducted every year in the autumn.
The Remuneration Committee's duties and responsibilities, as defined in the committee charter, are presented below.