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Remuneration

Posti’s remuneration philosophy is designed to support the achievement of our strategic goals and reward for proven results and excellent performance delivered in line with the Group’s strategy, culture and values. The remuneration philosophy supports the Group in attracting, keeping and motivating the best possible teams and talents to deliver the development and results of the Posti Group.

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

 

Remuneration of the Board of Directors

Members of the Board of Directors will receive a monthly remuneration and a meeting fee as follows: The Chairman of the Board of Directors is paid EUR 3,650, Deputy Chair of the Board of Directors EUR 2,350 and members of the Board of Directors are each paid EUR 2,100. A meeting attendance fee of EUR 600 per meeting is paid to all Members of the Board of Directors, and the meeting fee will be paid in double for the Board members residing outside Finland. No Board remuneration will be paid for the member of the Board of Directors employed by Posti Group.

 

Remuneration and contractual arrangements for the President & CEO

The President and CEO is appointed and, if necessary, dismissed by the Board of Directors, which also decides the terms of employment, including remuneration of the President and CEO.

The Board of Directors of Posti Group Corporation has appointed Turkka Kuusisto, (b. 1979, M.Sc. Eng.) as President and CEO of Posti Group Corporation as of February 6, 2020.

The President and CEO receives a fixed salary of EUR 37,500 per month, which includes fringe benefits (such as car, meal and mobile phone benefits) as per the company policy. In addition, the President and CEO is entitled to medical expense, risk and life insurance.

The President and CEO is included in the short-term bonus and long-term incentive schemes, the details of which are described in Posti’s Corporate Governance Statement. Remuneration of the President and CEO follows the state-ownership guidelines concerning the remuneration of executive management.

According to the guidelines, the maximum amount of the annual variable bonuses based on set targets can be at most 50% of the fixed yearly salary of the recipient of the remuneration.

If the performance of the company and the recipient is exceptionally good, the maximum amount of the annual bonuses payable can be at most 120% of the fixed yearly salary.

The President and CEO has no supplementary pension plan. The retirement age and pension of the President and CEO are determined in accordance with general pension legislation. The mutual termination notice period is six months. The President and CEO is entitled to an additional severance pay of six months’ salary in case the company terminates his service without cause.

 

Remuneration philosophy for the leadership team

Posti Group Corporation’s Leadership Team assists the CEO in business management and development, and coordinates Group management. In addition, it discusses and prepares matters for the Board of Directors. Key issues discussed by the Leadership Team include the Group strategy and annual business plans, financial and sales planning and monitoring, acquisitions, and other business-related investments.

The Leadership Team is not a formal decision-making body: the issues it discusses and the ensuing recommendations are submitted to Posti Group Corporation’s Board of Directors or executed under the authorization of the CEO.

Our remuneration philosophy aims to ensure that the remuneration practices are aligned with and support the strategic agenda of the company and its target corporate culture. The remuneration philosophy supports the company in attracting, keeping and motivating the best possible individuals to deliver the targeted development and results of the Group.

The purpose of our reward programs is to create a clear link between business performance, individual performance and individual remuneration. The programs recognize and reward high performance which is delivered in line with company strategy, culture and values. The reward programs contribute to business success by ensuring that the remuneration of employees and senior leaders is market competitive, making it possible to attract and retain the best talent.

Posti endorses transparency, fairness and diversity in all reward programs and in order to support successful implementation of company strategy, it is essential to maintain balance between market competitiveness and total cost of remuneration.

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

The table below shows the total salary, Supplementary pension contribution, short term bonuses and long-term incentives. paid to the Posti Leadership Team (other than the CEO) in 2019. Total salary includes fringe benefits, holiday pay and special one time payment.

Total salary

2,140,056 euros

Supplementary pension

43,391 euros

Short-term bonus

534,957 euros

Long-term incentives

80,062 euros

 

See also

Remuneration statements