Compensation for the President and CEO and the Fortum Management Team
The remuneration of the President and CEO amounted to EUR 812,936 (2012: 1,260,483) and the remuneration of other Fortum Management Team members amounted to a total of EUR 2,997,744 (2012: 3,515,796).
The table below includes the short-term compensation paid to the President and CEO and the Fortum Management Team during 2013 and 2012. The bonuses paid to the Management Team, including the President and CEO, amounted to a total of EUR 155,182 (2012: 993,131), which corresponds to 0.04% (2012: 0.26%) of the total remuneration in the Fortum Group.
|Total 2013||Total 2012|
|President and CEO||795,000||979,824||17,935||280,659||812,936||1,260,483|
Team members 2) 3)
1) Short-term bonus payments are based on the previous year's targets and achieved results.
2) Including compensation of EUR 80,000 paid to CFO Rauramo for assuming the duties of the President and CEO during March-November 2013.
3) CFO Rauramo was granted a recruitment bonus in 2012, to be paid over three years. As Fortum disclosed in 2012, the first 33,334 euro payment was made in 2012. The second payment of the same amount was disbursed in 2013 and Rauramo is entitled to a third payment of the same amount in 2014.
Additionally, the President and CEO had a gross income of EUR 971,341 from the share delivery of share plans 2007-2012 and 2010-2015 during spring 2013. The corresponding aggregated figure for the other members of the Fortum Management Team was EUR 1,508,203. The shares from share plan 2010-2015 cannot be transferred or sold before the end of the lock-up period.
Shares delivered to the management
The table shows the number of Fortum shares delivered to the President and CEO and other Fortum Management Team members under the long-term incentive plans.
According to the Cabinet Committee's Economic Policy, the total taxable gross value of the benefit arising from the shares delivered to a participant cannot exceed the participant's one year salary.
Fortum Management Team members 31st December 2013
|Alexander Chuvaev 1)||35,783||18,749|
|Kaarina Ståhlberg (member of the Fortum Management Team from 1 September 2013)||-||-|
1) Share rights will be paid in cash instead of shares after the three-year lock-up period due to local legislation
Remuneration and terms of employment of President and CEO Tapio Kuula
Salary and fringe benefits
|Base salary EUR 77,845 /month, including free car allowance and phone allowances as fringe benefits.|
Short-term incentive system (bonus) *
|The bonus can be earned annually based on the criteria approved by the Board of Directors. The maximum level is 40% of the annual salary including fringe benefits.|
|Long-term incentive system (share bonus) *||According to Fortum management’s current share bonus system the maximum value of shares (before taxation) cannot exceed the annual salary of the President and CEO.|
|Retirement age is 63. The President and CEO’s supplementary pension is a defined contribution pension plan, and the annual contribution is 25% of the annual salary. The annual salary consists of the base salary, fringe benefits and bonuses. If the President and CEO’s contract is terminated before retirement age, he is entitled to retain the funds that have accrued in the pension fund.|
Termination of contract
|The notice period for both parties is six months. If the company terminates the contract, the President and CEO is entitled to the salary of the notice period and to severance pay equal to 18 months’ salary.|
*) Annual bonus payments (short- and long-term ) cannot exceed 120% of annual salary (annual salary = 12 times the salary paid in December of the year in question).