Remuneration of the Management Board comprises a base salary, benefits and performance-based incentive plans. The incentive plans consist of an annual short-term bonus plan and a long-term share incentive plan.
Main employment terms of the Management Board
Short-term incentives (STI)
The short-term bonus plan for the members of the Management Board is determined based on the achievement of the Kemira Group, Segment level and role-based targets set by the Board of Directors for each financial year.
The maximum bonus for the members of the Management Board is 60% to 80% of the annual base salary.
The performance criteria 2021 are determined on the basis of Group operative cash flow after investing activities, Group or Segment level operative EBIT in EUR, Group or Segment level Organic Revenue Growth in EUR, safety related KPI’s of Kemira Group, and role based targets.
The performance criteria 2020 were determined on the basis of Group operative cash flow after investing activities, Group or Segment level operative EBIT in margin and euros, safety related KPI’s of Kemira Group, and role-based targets. The reward from the 2020 performance period will be paid in 2021.
Long-term incentives (LTI)
The objective of the long-term share incentive plans is to combine the interests of the shareholders and the members of the Management Board in order to increase the value of Kemira and to commit the members of the Management Board to Kemira.
Depending on country practices, mutual termination notice period of 1 to 6 months applies to the members of the Management Board. In addition, a severance payment of 6 to 9 months’ salary is paid to the member of the Management Board if the company terminates the employment agreement without a cause attributable to the person.
The members of the Management Board are entitled for life and permanent disability, private accident, business travel, and directors’ and officers’ liability insurances, and participate in the company sickness fund or other similar arrangement.
The Management Board members who are employed by a Finnish Kemira company do not have any supplementary pension arrangements in addition to the statutory pensions. Members of the Management Board who are employed by a foreign Kemira company participate in pension systems based on statutory pension arrangements and market practices in their local countries.
Remuneration of the Management Board for the preceding financial year (2020)
||Management Board*, EUR
|Fixed annual salary (incl. taxable benefits)
|2020 short-term incentive payment
|Share-based incentive payment
* Members of the Management Board in 2020: CFO Petri Castrén, CTO Matthew R. Pixton, President Pulp and Paper Kim Poulsen, EVP Operational Excellence Esa-Matti Puputti, President Industry and Water Antti Salminen, EVP Human Resources Eeva Salonen.