Our remuneration principles aim to attract and retain the best talent, motivate key people and align the goals of the company's shareholders and executives to enhance the value of the company
The table below summarises the remuneration and the main terms and conditions of Kimmo Alkio's employment.
Salary and benefits |
EUR 807 300/year and car benefit of maximum EUR 26 400/year. In 2020, the fixed salary of the CEO is temporarily cut by 15% for a three-month period. Total salary in 2020 will amount to EUR 777 026. |
|
Basis of bonus |
75% of annual base salary when targets met.
Based on financial performance in 2019, the CEO was paid a bonus of EUR 412 078. |
|
Share-based incentive plans |
Participant in share-based incentive plans for 2018–2020 and 2019–2021 and 2020-2022. In March 2020, a total of 13 947 shares were transferred on the Performance Share Plan 2017–2019. In addition, a cash portion was paid corresponding to a value of 11 930 shares. |
|
Additional incentives |
Additional success-based incentive 2016-2019 |
|
Share ownership guideline |
The recommended minimum investment in company shares corresponds to the executive's one time gross annual base salary. |
|
Retirement age |
63 |
|
Pension expenditure |
In 2019 EUR 238 086. In addition to the statutory pension provision: a defined contribution pension plan, where the expenditure is 23% of the annual base salary. |
|
Period of notice |
12 months (six months if terminated by the President and CEO) If the agreement is terminated by Tieto, the company will pay severance equivalent to the base salary plus the short-term target incentive for six months on top of the salary for the notice period. |
|
Severance payment |
If someone acquires over 50% of the company's shares or the company is merged with another company as a merging company and if the agreement is terminated by either party within nine months of such acquisition or merger, the company shall pay a severance payment equivalent to the base salary plus the short-term target incentive for six months and the monetary value of the maximum amount of shares granted to him in the most recent long-term incentive plan in addition to the salary for the notice period. |
Updated information on the shares and options held by the President and CEO is available under insider register.
1)Payments to defined contribution plans are recognized as expenses for the period to which they relate. After payment of the contribution the Group has no further obligations in respect of such plans.