The Board of Directors appoints and discharges the President and CEO and decides on the President and CEO's remuneration and the other terms and conditions of the President and CEO's engagement. By decision of the Board of Directors, the President and CEO is paid a fixed base salary, which is a compensation for the President and CEO's responsibilities and is based on the requirements of the position, the President and CEO's individual's competence and performance as well as prevailing market practice.
Metsä Group’s CEO changed on 1 July 2025, when the current CEO, Jussi Vanhanen, started in the position.
CEO Jussi Vanhanen’s monthly salary is EUR 70,000 (July 2025). The monthly salary includes a car and phone benefit. In addition, the CEO has a defined contribution supplementary pension.
A short and long-term incentive can be paid to the President and CEO by decision of the Board of Directors. In 2025 the maximum level of remuneration available in the short-term incentive scheme is, accounting for Metsä Group's EBIT multiplier 93.75% of the fixed annual salary. The reward is based on Metsä Group's operating result (40% weighting), Metsä Group´s sustainability target (10% 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 potential reward shall be paid in March 2026 in proportion to the time spent in the role. The CEO is included in the 2023–2027 long-term performance plan for the 2025–2027 performance period. More detailed information is available on the long-term remuneration website.
The terms of CEO Jussi Vanhanen’s employment are defined in a written executive contract approved by the Board. The notice period under the contract is six months. If the company terminates the employment, Vanhanen is entitled to severance pay equivalent to 12 months’ total salary. No severance is paid if Vanhanen resigns voluntarily.
The CEO is covered by the Employees Pensions Act, which provides statutory pension security based on service time and earnings. CEO Jussi Vanhanen’s retirement age is in accordance with the Employees Pensions Act. Vanhanen is also covered by a defined contribution supplementary pension scheme with a set retirement age of 63. The annual supplementary pension contribution is 20% of the CEO’s total salary, including short-term incentives. If the CEO’s employment ends before retirement age, he is entitled to a free policy.
Remuneration of the President and CEO in 2025*
In 2024 the maximum level of remuneration available in the short-term incentive scheme was, accounting for Metsä Group's EBIT multiplier 93.75% of the fixed annual salary. The reward was based on Metsä Group's operating result (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. In 2025, no short-term remuneration will be paid to the President and CEO for 2024 when the threshold indicator of the short-term remuneration scheme (Metsä Group's operating profit) falls below the threshold value.
The CEO was included in the 2020–2024 long-term performance plan for the 2022–2024 performance period, as well as in the 2023–2027 plan for the 2023–2025, 2024–2026, and 2025–2027 performance periods.
The reward for the 2021–2023 performance period under the 2020–2024 long-term performance plan was paid to the CEO after the retention period in March 2025. The performance period outcome was 100%. The reward amount was based on the value of Metsä Group’s synthetic share. The CEO received a reward of EUR 1,777,051 paid entirely in cash.
Remuneration of the President and CEO in 2024*
In 2023 the maximum level of remuneration available in the short-term incentive scheme was, accounting for Metsä Group's EBIT multiplier 93.75% of the fixed annual salary. The reward was based on Metsä Group's operating result (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 200,595 based on performance in 2023 was paid to the President and CEO in March 2024.
The CEO was included in the 2020–2024 long-term performance plan for the 2021–2023 and 2022–2024 performance periods, as well as in the 2023–2027 plan for the 2023–2025, 2024–2026, and 2025–2027 performance periods.
The reward for the 2020–2022 performance period under the 2020–2024 long-term performance plan was paid to the CEO after the retention period in March 2024. The performance period outcome was 100%. The reward amount was based on the value of Metsä Group’s synthetic share. The CEO received a reward of EUR 2,379,205 paid entirely in cash.
*The CEO remuneration in 2025 and 2024 refers to the remuneration of the company’s former CEO, Ilkka Hämälä.