The Board of Directors decides on the remuneration and other financial benefits of the other Group's Executive Management Team members employed by Metsäliitto Cooperative on the basis of the HR Committee's preparation.
A fixed base salary is paid to the other Group's Executive Management Team members. Base salary is a compensation for the executive's responsibilities and is based on the requirements of the position, the executive's individual competence and performance as well as prevailing market practice. Base salary can include car, bicycle and mobile phone benefits and an extended health, travel and accident insurance coverage.
A short and long-term incentive can be paid to the other Group's Executive Management Team members by decision of the Board of Directors. In 2024 the maximum level of remuneration available in the short-term incentive scheme is, accounting for Metsä Group's EBIT multiplier, 75% of the fixed annual salary. The reward is based on the operating result of the respective company (50% weighting) and the strategic goals defined by the Board of Directors, including sustainability targets (50% weighting) as well as the realisation of Metsä Group's EBIT multiplier. The potential reward shall be paid in March 2025.
The CEO of Metsä Board Corporation is a member of Metsä Board’s performance share plan 2020-2024. The potential reward for the performance period 2022-2024 shall be paid in March 2025. Further information on Metsä Board's performance share plan 2020-2024 is available on company's webpages.
The potential reward of other Group’s Executive Management Team members for the performance period 2022–2024 regarding the long-term performance plan 2020-2024 is based on the development of Metsä Group's return on capital employed (ROCE, %) as determined by the Board of Directors. Minimum levels have also been set for earnings before interest and taxes as well as the equity ratio. The Board of Directors is entitled to reduce the rewards fully or partly if defined earnings or equity ratio criteria are not met, or if the reward should exceed the maximum reward limit defined for the other Group’s Executive Management Team member individually. In addition to the outcome of the performance criteria, the basis for the reward is a synthetic share value of which is determined based on Metsä Group's total value. On maximum level the reward potential of the other Group’s Executive Management Team members is 140% or 210% of the executive’s annual base salary (the reward limit is 180% or 270% of the executive’s annual base salary). The potential reward shall be paid in cash after the restriction period (in March 2026 at the latest) and it shall include taxes and other possible expenses. Should the other Group’s Executive Management Team member’s service or employment terminate during the performance or restriction period, the executive shall principally lose the right to reward.
The period of notice applicable to other Group's Executive Management Team members is six months, and the members are entitled to severance pay equaling 6–12 month salary if their contract is terminated on grounds not related to the executive.
The other Group Executive Management Team members fall within the scope of the Employees Pensions Act. It provides pension security based on the period of service and earned income as provided in the Act. Depending on the date on which the employment contract began, some members of Metsä Group's Executive Management Team are entitled to the supplementary defined benefit pension insurance, with a retirement age of 62. According to the supplementary pension insurance the maximum level of pension is 60% of the total salary under the Employees Pensions Act, calculated on the basis of the five-year period preceding retirement. In case their employment relationship with Metsä Group terminates before the retirement age, a member of the Executive Management Team is entitled to a free policy.
Remuneration of other Metsä Group’s Executive Management Team members in 2024
In 2023 the maximum level of remuneration available in the short-term incentive scheme was, accounting for Metsä Group's EBIT multiplier, 75% of the fixed annual salary. The reward was based on the operating result of the respective company (50% weighting) and the strategic goals defined by the Board of Directors (50% weighting) as well as the realisation of Metsä Group's EBIT multiplier. The short-term incentive will be paid in March 2024.
The reward of Metsä Board's CEO for the performance period 2021-2023 regarding the performance share plan 2020-2024 was based on the development of Metsä Board Group's (50%) and Metsä Group's (50%) return on capital employed (ROCE, %), as determined by the Board of Directors. Minimum levels had also been set for the operating result and equity ratio. The realisation of the performance period 2021-2023 was 100%. Further information on Metsä Board's performance share plan is available on company's webpages.
The reward of other Group's Executive Management Team members was based on the development of Metsä Group's return on capital employed (ROCE, %) as determined by the Board of Directors. Minimum levels had also been set for the operating result and equity ratio. The realisation of the performance period 2021-2023 was 100%.
Based on the realizations of the performance period 2021-2023 other Group's Executive Management Team members receive the reward in cash after one year restriction period in March 2025. The value of the reward is based on the value of Metsä Group synthetic share. The reward of other Group's Executive Management Team members (including both shares and cash) can be 140% or 210% of the executive's annual base salary at the maximum.
Remuneration of other Metsä Group’s Executive Management Team members in 2023
| Other Metsä Group's Executive Management Team | Base salary and fringe benefits (a company car and phone benefit, extended insurance coverage) |
Short-term incentive* | Long-term incentive** | Deferred long-term incentive |
Total |
| 2023 | 2,664,691 | 1,267,166 | - | - | 3,931,856 |
| 2022 | 2,623,925 | 1,174,515 | 2,525,779 | 27,195 | 6,351,414 |
*The performance bonus paid in 2023 relates to performance in 2022 and the performance bonus paid in 2022 relates to performance in 2021.
** Any rewards in Metsä Group’s long-term incentive system based on synthetic shares, which has been in force since 2020, will be paid after the restriction period. Therefore, no rewards were paid from Metsä Group’s long-term incentive system in 2023. Share Plan 2020-2024.Detailed information on the 2023 payment can be found on the company's website. The bonus paid in 2022 related to the performance period 2019-2021 of the share-based compensation plan 2017-2021.
In 2022 the maximum level of remuneration available in the short-term incentive scheme was, accounting for Metsä Group's EBIT multiplier, 75% of the fixed annual salary. The reward was based on the operating result of the respective company (50% weighting) and the strategic goals defined by the Board of Directors (50% weighting) as well as the realisation of Metsä Group's EBIT multiplier. The short-term incentive of EUR 1,267,166 based on performance in 2022 was paid to the other Group's Executive Management Team members in March 2023.
The reward of Metsä Board's CEO for the performance period 2020-2022 regarding the performance share plan 2020-2024 was based on the development of Metsä Board Group's (50%) and Metsä Group's (50%) return on capital employed (ROCE, %), as determined by the Board of Directors. Minimum levels had also been set for the operating result and equity ratio. The realisation of the performance period 2020-2021 was 100%. More detailed information on Metsä Board Corporation's performance-based share-based compensation scheme can be found on the company's website.
The reward of other Group's Executive Management Team members was based on the development of Metsä Group's return on capital employed (ROCE, %) as determined by the Board of Directors. Minimum levels had also been set for the operating result and equity ratio. The realisation of the performance period 2020-2022 was 100%.
Based on the realizations of the performance period 2020-2022 other Group's Executive Management Team members will receive a full cash bonus after the vesting period in March 2024, the amount of which will be determined by the value of Metsä Group's synthetic share. Other Management Team members reward can be 140% or 210% of the executive's annual base salary at the maximum.
Any rewards in Metsä Group’s long-term incentive system based on synthetic shares, which has been in force since 2020, will be paid after the restriction period. Therefore, no rewards were paid from Metsä Group’s long-term incentive system in 2023.