Remuneration Committee

Duties and responsibilities of the Remuneration Committee are related to the remuneration of the President and CEO and senior executives reporting directly to the President and CEO, and to the evaluation, planning and preparation of the company’s incentive schemes and annually commencing plans. The committee’s work to perform these duties and responsibilities are described below.

Committee work

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 corresponding
positions in peer companies. Based on this review, the committee makes recommendations
to 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, and
makes 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.  

Remuneration Committee’s duties and responsibilities​

Management remuneration​Review the corporate goals and objectives relevant to the remuneration of the President and CEO and other senior executives

Evaluate the President and CEO's and other senior executives’ performance in light of the set goals and objectives

Make recommendations to the Board for the remuneration of the President and CEO and other senior executives

Review short term incentive targets and make recommendations to the Board for the pay-out of incentives to the President and CEO and other senior executives

Make recommendations to the Board for the pay-out of share based long term incentives to the President and CEO and other senior executives

Make recommendations to the Board concerning the terms of service contracts, severance arrangements or retention plans with the President and CEO or with other senior executives
​Incentive schemesMake recommendations to the Board with respect to the company's remuneration policies and plans, including incentives, share-based plans and pension plans

Oversee the administration of the company's share-based incentive and other plans approved by the Board
​Succession planning​​Review the succession planning procedures and development strategies for senior level positions

Review succession plans for the President and CEO and other senior executives​
​Compliance​Oversee regulatory compliance with respect to remuneration

Review the company's share ownership recommendations and compliance with them
Other​​Perform any other duties delegated to the committee by the Board from time to time