The aim of the Posti Group’s reward policy is to motivate competent personnel at all organizational levels and increase their commitment to the company, as well as to reward them for results and successful outcomes.

The company’s Board of Directors determines the principles according to which executive management and key personnel are remunerated and receive bonuses annually, on the recommendation of the Remuneration and Nomination Committee.

Posti complies with the state-ownership guidelines concerning the remuneration and pension benefits of executive management.

The Cabinet Committee on Economic Policy, representing the Government Ownership Steering Department, issued a new statement on the remuneration and pension benefits of management in companies with State ownership on August 13 2012. All reward schemes that begin after the issuance of the statement are in compliance with the guidelines contained therein. All previous reward schemes are in compliance with the Cabinet Committee on Economic Policy’s previous statement from 2009.

Profit Sharing Bonus

The profit sharing bonus shares the success of the company with its personnel. The profit-sharing scheme covers the entire personnel, excluding Posti Group Corporation’s Executive Board.

The Board of Directors decides on the calculation principles and on the threshold target annually based on the Remuneration and Nomination Committee’s proposal. The profit sharing bonus is a percentage of Posti’s operating profit.

In Finland, the profit sharing bonus is paid through the Personnel Fund and in other countries in cash.

The Board of Directors confirmed that there is no profit sharing bonus paid from year 2015.
The Board of Directors confirmed the profit sharing bonus for 2014 as EUR 1.0 million.
From year 2013 the Board of Directors approved 1.2 m euros to be paid as profit sharing bonus.

Short-term Incentives

The short-term incentive bonus is linked to company performance and individual performance. The short-term incentive scheme is a monetary incentive scheme that guides activities towards strategic priorities.

The performance-based incentives of the Group’s executive management and key employees are determined by the Board of Directors based on the proposal of the Remuneration and Nomination Committee. The performance-based incentive is paid in cash.

The targets for the members of the Executive Board consist of Group, business group and individual level targets based on the strategic focus areas approved by the Board of Directors.

Decisions concerning the remuneration of other personnel are made by the executive management based on the Board of Directors’ guidelines and Posti’s remuneration policy. The criteria for incentive bonuses are agreed with target and development discussions held between employees and their supervisors.

The amount of short-term incentive bonuses paid to the CEO and the members of the Executive Board and the Management Board depend on the Group’s financial performance and the achievement of individual targets. The criteria for short-term incentive bonuses also include indicators related to customer satisfaction, operational efficiency and corporate culture. The maximum level of the short-term incentive bonus for executive management is 60 per cent of the recipient’s annual pay including fringe benefits. All incentive schemes starting in 2015 are in compliance with the Cabinet Committee on Economic Policy statement on the remuneration of management issued on August 13 2012.
The amount of each senior executive’s incentive is dependent on the Group’s financial performance and on their own success in reaching personal targets. The maximum incentive pay for the CEO, Executive Board and Management Board  is 40% of the executive’s annual salary including fringe benefits. The targets for 2014 have been specified in proportion to group operating profit, customer and employee satisfaction, corporate responsibility and strategic projects. The reward programs issued during 2014 follow the State Ownership Steering Cabinet Committee statement issued on August 13th 2012.
The amount of each senior executive’s incentive is dependent on the Group’s financial performance and on their own success in reaching personal targets. The maximum incentive pay for the CEO, Executive Board and Management Board  is 40% of the executive’s annual salary including fringe benefits. The targets for 2013 have been specified in proportion to group operating profit, customer and employee satisfaction, corporate responsibility and strategic projects. The reward programs issued during 2013 follow the State Ownership Steering Cabinet Committee statement issued on August 13th 2012.

Long-term Incentives

The long-term incentive plan is a monetary incentive scheme designed to motivate, and retain in the service of the Group, key employees who are critical to the company’s success. The Group’s long-term incentive plans are intended to support the achievement of long-term targets. The plan is based on company-level performance.

The Board of Directors approves the key employees entitled to participate in the long-term incentive plan. Participation is discretionary with no automatic entitlement from year to year.

The Board of Directors decides separately for each plan the lenght of performance period, performance measurements and their criteria, participants and maximum earning opportunity of each participant. Performance period can contain from one to three earning periods.

 

Performance measures

Total maximun incentive

Plan status

LTI6
2012-2014

Profitability and growth

40-100% of performance period salary

Incentive from earning periods 2012-2013 paid in 2015. Earning period 2014 ended without resulting a payment.

LTI7
2013-2015

Profitability and growth

40% of participant's one year salary

Plan ended 31.12.2015

 without resulting a payment.

LTI8
2014-2016

Profitability

40% of participant's one year salary

 

LTI9
2015-2017

Profitability and growth

40-60% performance period salary