>

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. 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.

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. Remuneration of the personnel is focused on timely remuneration for good performance and spot rewarding is specifically targeted towards work in company operations at both individual and team levels.

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

 

Remuneration decision-making process

The Personnel Committee is responsible for planning the remuneration of the CEO and the Posti Leadership Team members and setting the principles for pay arrangements covering all Posti personnel. The Board of Directors determines the remuneration of the CEO and other executives appointed by the Board. Remuneration of the Posti Leadership Team members may be approved by the Chair of the Personnel Committee upon the authorization of the Board. Remuneration of the Board of Directors and of the Supervisory Board is decided by the AGM.

Annual General Meeting

 

Decides on the remuneration for the Board of Directors and Supervisory Board.

 

Board of Directors

 

 

 

Decides on CEO remuneration as well as remuneration of other executives appointed by the Board. Decides on short-term and long-term incentive plans and criteria and sets the company level targets.

Personnel Committee

 

 

 

Prepares remuneration proposals to the Board. The Chair of the Personnel Committee may approve, upon the authorization of the Board of Directors, remuneration of the Posti Leadership Team members.

 

 

Remuneration of the Board, President and CEO and Leadership Team

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. At the Extraordinary General Meeting held on 16 November 2020, it was decided that the employee representative will also be paid a meeting fee for his or her membership of the Board 600 euros per meeting.

Remuneration and contractual arrangements for the President and 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, (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. As part of the coronavirus situation, the President and CEO waived one-month salary during 2020, continuing to work normally.

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 and contractual arrangements of the Posti Leadership Team

Posti’s Leadership Team assists the President and CEO in the Group’s operative management. It also prepares and considers matters for consideration of the Board of Directors. The most essential matters considered in the Leadership Team are the Group’s strategy and annual planning, business and sales planning and follow-up, business acquisitions and other business-related investments.

The Leadership Team 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 Leadership Team 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 Leadership Team members have no supplementary pension plan. Their retirement age and pension are determined in accordance with general pension legislation. The termination notice period for members of the Leadership Team is 6 months if the employer terminates the contract and 3 or 6 months if the Leadership Team member terminates it. The Leadership Team member is entitled to an additional severance pay of six months’ salary in case the company terminates the service without cause.

The table below shows the total salary, short term bonuses and long-term incentives paid to the Posti Leadership Team (other than the CEO) in 2020.

As of December 31, 2020, Posti Leadership Team composed of nine members in addition to the President and CEO. During 2020 three new members joined the Leadership Team.

Fixed salary including fringe benefits, holiday pay and insurance benefits *

Short-term bonus related to 2019 performance **

 

Long-term incentive relating to performance in 2017 (LTI9) and Bridge incentive plan (2X)

Total

 

 

1 700 238

351 750

442 233

2 494 221

 

* As part of the coronavirus situation, the Posti Leadership team waived one-month salary during 2020, continuing to work normally.

**The Short-term bonus amount includes the bonus paid to CEO Turkka Kuusisto for January 1 - October 1, 2019, i.e. as a member of the rest of the Posti Leadership team.

Incentive plans

Short-term bonus

The short-term bonus plan (STI) is a cash-based incentive which rewards for the achievement of Posti’s strategic priorities and short-term business plan. The short-term bonus targets for the CEO and other members of the Leadership Team are based on Group financial targets (including business level targets where appropriate) and individual strategic projects as determined by the Board of Directors. The maximum bonus opportunity for the program is 60% of annual salary. Payment of the bonus requires an employment relationship valid at the time of payment.

Short-term bonuses for the CEO for 2021 performance are based on Group Adjusted EBITDA, Group Net sales and Group LTA1. The performance metrics for the rest of the Leadership Team are based on Group/Business Group Adjusted EBITDA, Group/Business Group Net sales and Group LTA1. The potential short-term bonus will be paid in 2022.

Long-term incentive programs

The long-term incentive (LTI) program supports the delivery of long-term performance and aligns the interests of management with the shareholder. 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 long-term incentive plans are based on Group performance, measured over three financial years. The maximum amount of long-term incentive programs paid to the President and CEO and other Leadership Team is 60% of one-year salary. The incentive payment is conditional on a valid employment relationship at the time of the payment.

 

Plan

Performance measures

Outcome

LTI 9 performance period 2015-2017
Payment period 2018-2020

Profitability (ROCE %)

Growth (Net sales)

At target

LTI 10 performance period 2018-2020
Payment period 2021

Profitability (EPS)
Growth (Parcel BU net sales)

Over target

Bridge incentive plan 2X performance period 1.7.-31.12.2018 & 1.1.-30.6.2019
Payment period 2020-2022

Posti Group’s adjusted EBIT
Posti Group’s consolidated customer satisfaction

Over target

LTI 11 performance period 2019-2021
Payment period 2022

Profitability (EPS)
Growth (Parcel and eCommerce net sales)

 

LTI 12 performance period 2020-2022
Payment period 2023

Profitability (EPS)
Zero Carbon
Customer satisfaction

 

LTI 2021-2023

Profitability (EPS)
Zero Carbon
Customer satisfaction

 

 

See also

Remuneration policy

Remuneration report 2020

 

 

See also

Remuneration statements