About Posti
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Remuneration Statement

The Posti Group’s reward programs are designed to support to achievement of company strategic goals.

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 Personnel Committee. The remuneration paid to the President and CEO is decided by the Board of Directors. Personnel Committee prepares President’s and CEO’s and the Executive Board’s remuneration related topics for the Board of Directors decision making. In 2016 no outside remuneration consultants have been involved in the preparation work.

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

1. 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 Personnel 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 as a cash payment.

Year 2016

There has been no profit sharing payment delivered in 2016.

Year 2015

The Board of Directors confirmed that there is no profit sharing bonus paid from year 2015.

Year 2014

The Board of Directors confirmed the profit sharing bonus for 2014 as EUR 1.0 million.


2. Short-term Incentives

The short-term incentive is linked to company performance and individual performance. The short-term incentive scheme is a monetary incentive scheme rewarding based on reaching company and business group 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 Personnel Committee. The performance-based incentive is paid in cash. The maximum earning opportunity of CEO is 60 percent of annual salary.

The short-term incentive targets for the CEO and other members of the Executive Board are based on the group and business group level targets and targets based on individual strategic projects as determined by the Board of Directors. The weight of individual strategic projects is 20%.

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 is agreed during target and development discussions held between employees and their supervisors.

Year 2016

The Posti Group profitability, net sales and success of the strategic projects determine the level of incentive payment to CEO and other members of the executive board. The maximum incentive payment is 60% of annual salary.

Year 2015

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.

Year 2014

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.


3. Recognition frame

Posti has a recognition model available to whole personnel. Individual employees can be rewarded for performance that exceeds expectations in resulting in exceptional improvement in operational result, customer services and safety at work.

4. Long-term Incentives

The Group’s long-term incentive plans are intended to support the achievement of long-term targets. The long-term incentive plan is a monetary incentive scheme designed to motivate and reward key employees who are critical to the company’s success. The plan is based on group 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 length of performance period, performance measurements and their criteria, participants and maximum earning opportunity of each participant.

No long-term incentives have been paid in 2016.



Performance measures

Total maximum incentive

Plan description


 Profitability and growth 40% of participant's one- year salary Plan ended December 31, 2015 without resulting a payment.


Profitability 40% of participant's one-year salary Plan has a performance period covering calendar years 2014-2016. Plan ended December 31, 2016 with final result between threshold and target level. Incentive is payable in three installments during 2017, 2018 and 2019.


Profitability and growth 40-60% performance period salary Plan has performance periods 2015, 2016 and 2017. For each period Board of Directors decided the performance criteria.


long term incentive plans