Fees and benefits

REMUNERATION

Remuneration of the Board of Directors

The Annual General Meeting decides on the remuneration of the Board of Directors.

The Board members are paid a fixed-rate monthly fee and a meeting fee. The fee varies in accordance with the role. In addition, the members of the Board’s committees are paid a meeting fee for committee meetings. Board members’ fees are paid in cash.

The members of the Board of Directors may be compensated for direct costs arising from Board’s activities, including travel expenses in accordance with the company’s travel policy.

The 2023 Annual General Meeting confirmed the following fees for the members of the Board until the end of the 2024 Annual General Meeting:

Remuneration of the CEO

The Board of Directors of Olvi plc shall prepare and confirm the salary, fringe benefits (total salary), short-term incentives and long-term share-based incentive plans for the CEO within the framework of the Remuneration Policy presented to the General Meeting.

The CEO is not paid any separate fees for their work in the Group’s Management Team or other internal management bodies within Olvi Group.

The CEO’s annual basic salary is EUR 360,430. The maximum amount of remuneration paid based on the short-term incentive plan is 70 percent of the basic annual earnings. The CEO belongs to the performance-based share incentive plan for the Group’s key personnel, and the CEO also has a performance-based matching share plan.

The CEO’s long-term share-based incentive plans

More detailed information on the remuneration of the Board of Directors and of the CEO are presented in the Remuneration Policy and in the Remuneration Report, which is published as an appendix to the annual report.

Remuneration of the other top management

Effective as of January 2024, for the Olvi Group has been established and appointed a Group Management Team. Some of the members of the Group’s Management Team are also members of Olvi plc’s Management Team. Remuneration of these Management Team members follows the practices approved for rewarding the Group’s Management Team.

​The structure of total remuneration to management comprises a fixed remuneration, consisting of the basic salary and fringe benefits (unlimited car and mobile phone benefit), as well as short-term and long-term incentives.

Fixed remuneration

The Board of Directors decides on the terms of service of other top management based on the CEO’s proposal. Other management executives do not receive separate remuneration for their work in the Management Team or other internal management bodies within Olvi Group.

Short-term incentives (STI) 

Short-term incentives are performance reward systems in which the maximum monitoring period is one financial year. The grounds for incentives are determined by the Board of Directors. The purpose of short-term remuneration is to encourage and reward the implementation of the short-term business strategy and the achievement of operational and financial targets.

The maximum performance salary to be paid is 50 per cent for members of the Group Management Team and 40 per cent for members of Olvi plc’s Management Team of annual income determined based on basic monthly income. The performance salary is based on the achievement of the operating result and operational development targets set by the Board of Directors for the monitoring period in question.

Long-term incentives (LTI)

The purpose of long-term remuneration include increasing the shareholder value, improving competitiveness, achievement of strategic targets and sustainable long-term growth, and engage the company’s operational management and key people.

The minimum performance period in share-based incentive plans is two years. Performance is assessed in connection with the completion of the financial statements and against the criteria at the end of the performance period, and any rewards to be paid depend on the level of success in achieving the set targets.

Olvi plc’s Management Team’s rewards in 2023

Olvi plc’s Management Team’s long-term share-based incentive plans

Olvi Group’s Management Team’s long-term share-based incentive plans

The rewards will be paid all at once after the end of the performance period. The rewards depend on the validity of the employment relationship at the time of payment.

Members of the Group Management Team must own at least half of the shares they have earned as a net reward, until the total value of their shareholding in the company equals half their annual salary in the previous year. This number of shares in the company must be held for as long as the membership in the Management Team continues.

A more detailed description of the existing incentive plans can be found in the financial releases.

Pension 

The pension of the members of Olvi plc’s Management Group is determined in accordance with the applicable legislation. They belong to the Finnish TyEL pension scheme. A member can retire on old-age pension between 63 and 68 years of age, and the pension is determined on the basis of an increasing percentage. The company’s pension schemes are defined contribution plans.

Terms and conditions of termination and serving notice

Terms and conditions of termination and serving notice of the other management are determined on the basis of the collective agreement applied by the company. The company has no severance pay agreement.