The objective of VMP’s remuneration program is to promote the Company’s competitiveness and long-term financial success, and to support the favorable development of shareholder value. Remuneration programs are based on previously determined and measurable criteria on performance and results. In general, the incentive scheme is based on the Company’s operating margin or the operating margin of a specific VMP subsidiary, depending on which Company remuneration program the member is in a service relationship with or employed by.
Remuneration of the Board of Directors
VMP’s Annual General Meeting annually decides the Board members’ remuneration and the basis for reimbursement of expenses based on a proposal by the Company’s largest shareholders.
By decision of Company shareholders, Board members were not paid remuneration in January 1 – May 29, 2018.
By unanimous decision of Company shareholders on May 18, 2018, the Company will not pay remuneration to the following ordinary Board members: Liisa Harjula (Chairperson), Mika Uotila, Virva Vesanen and Paul Savolainen. Other members of the Board are paid EUR 2,000 per month as Board remuneration, however in such a way that Heimo Hakkarainen will be paid as of the beginning of the month following the termination of his salary payments from his employment relationship with VMP. No additional compensation will be paid for Board meetings or Audit Committee meetings. In addition, by shareholder decision, possible other board remuneration paid by Group subsidiaries pertaining to the same payment period will be deducted from Board members’ remuneration. Travel expenses incurred from attending Board meetings are reimbursed against reasonable invoices.
Remuneration of the CEO and members of the Management Team
The Board decides on the conditions of the CEO’s service relationship and the compensation of members of the Management Team. The Board approves the CEO’s and other management’s incentive schemes and the Company’s remuneration principles. The target of the annual bonus scheme is to reward the management and key employees for accomplishing previously defined and measurable strategic and financial targets. The Board approves the rules of the bonus schemes, under which possible bonuses are paid. The Board evaluates the performance of the Company, the CEO and members of the Management Team.
The salaries of VMP’s CEO and members of the Management Team consist of a monthly salary. The CEO, selected members of the Management Team and key employees are entitled to short-term incentive schemes, terms of which are defined annually by the Board. The payment of possible bonuses is based on the realization of personal targets and profitability targets set by the Board for the financial period. The actual bonuses paid can range from zero to a predetermined maximum amount, based on the targets achieved. The performance bonuses can reach a maximum amount equivalent to four months’ fixed salary for the CEO and other members of the Management Team. The CEO and other members of the Management Team are entitled to a mobile phone and meal benefit. The CEO and selected members of the Management Team are entitled to a company car. Several members of the Management Team have an internet connection benefit.
Salary and Remuneration report