The Company has cash-based incentive plans in effect. Some members of the Company’s management team and other key employees are entitled to participate in long-term incentive plans with performance targets mainly based on the EBITDA of Company or a certain subsidiary depending which company the participant serves. The The Company does not have any share-based incentive plans. The bonuses paid typically correspond to the salary for 1 to 4 months.
Board of Directors, Fees
According to the Finnish Liability Companies Act, the Annual General Meeting decides on the fees payable to the members of VMP’s Board of Directors. The shareholders of the Company decided on May 18, 2018 that no compensation will be paid to Liisa Harjula, Mika Uotila, Virva Vesanen and Paul Savolalainen. Tapio Pajuharju, Heimo Hakkarainen and Joni Aaltonen will be paid a monthly fee of EUR 2,000 from the beginning of their term of office. In addition, the shareholders decided that the remuneration of the Board members should be deducted from the possible remuneration paid by other Group companies for the same rewarding period. For the year ended December 31, 2017, Tapio Pajuharju, a member of VMP’s Board of Directors, was paid a total of EUR 24,000, and Mika Verronen, a member of VMP’s Board of Directors EUR 15,000. No fees were paid to the other members of the Board of Directors.
Remuneration of the CEO and Members of the management team
The salary and other benefits paid for the CEO for the financial year ended December 31, 2017 amounted to EUR 251,767.13. The combined salaries and other benefits of the other members of the management team for the year ended December 31, 2017 amounted to EUR 1,062,405.53. The figures include the salaries and fees paid by all VMP’s companies insofar as the persons mentioned above serve different companies.
Some members of the Company’s management team are entitled to a severance fee. If the service contract of such person is terminated by the Company, he/she is entitled to receive a severance fee of six months’ salary in addition to the salary for the notice period, unless the termination of the contract results from a breach of the contract by the member of the management team in question.
Shareholding and Options of held by the Members of the Board of Directors and management team
Members of VMP’s Board of Directors and management team hold a total of 918 420 shares in VMP, representing approximately 6.2 percent of VMP’s shares and votes.
The figure includes individuals’ direct holdings and the holdings of their related parties and controlled entities.
Additionally, some members of the Board of Directors act/work in a managerial position with notable shareholders.