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President and CEO

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.

In 2019, salary amounted to EUR 702 000 and benefits to EUR 11 195. Special payments 2019, comprising integration award, amounted EUR 702 000.

 

Basis of bonus

75% of annual base salary when targets met.
Maximum 150% of annual base salary.

Weighting of reward factors:

  • Group revenue 20%

  • Group adjusted operating profit 20%

  • Synenergy targets 20%

  • Adjusted free cash flow 20%

  • Strategic and operational goals 20%

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.
Share rewards will be based on the relative Total Shareholder Return of TietoEVRY share (TSR), strategic target related to TietoEVRY growth and Earnings per Share (EPS). 

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

The additional success-based incentive subject to Tieto reaching challenging profitability targets (EBIT) expired without payment at the end of 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.

Should the CEO stay in the company after an acquisition or a merger, he is entitled to the above mentioned outcome of the most recent long-term incentive plan after twelve months after such an acquisition or a merge.

If the agreement is terminated by the President and CEO, except in the event of the above mentioned over 50% take over or the merge, the severance payment shall not be paid.

 

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.

 

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