Remuneration of the President and CEO

The Board of Directors decides on the remuneration, benefits and other terms of employment of the President and CEO based on the preparatory work by the Remuneration and HR Committee and in accordance with the guidelines set forth in this Remuneration Policy presented to the General Meeting. External market data is used to support the process according to our remuneration principles. The Board determines the total remuneration elements of the President and CEO based on market benchmarking and other relevant information available.

The remuneration of the President and CEO is comprised of the total salary (monthly base salary and customary fringe benefits, such as a car and a mobile phone, in accordance with local legislation and market practice), short- and long-term incentives, pension benefits and customary insurances. The fixed annual base salary of the President and CEO in 2024 is EUR 900,000. The maximum relative proportion of the variable pay elements of the President and CEO is 2–3 times the fixed salary.

Long-term incentive plan, Performance Share Plan

In December 2020, the Board of Directors of Valmet Oyj approved a long-term share-based incentive plan, the Performance Share Plan, for Valmet's Executive Team members. The plan includes a three-year performance period parallel to a one-year performance period. Valmet's Board of Directors decides on the predefined performance measures and targets in the beginning of each performance period.

The potentially earned share reward represents a gross reward from which the applicable payroll tax is withheld, and the remaining net balance is paid to the key employee in shares.