According to the Limited Liability Companies Act, the Annual General Meeting of Shareholders decides on the fees payable to the members of the Board of Directors.
The Annual General Meeting of Shareholders on 23 January 2020 resolved that the remuneration of the Chairman of the Board is EUR 60,000 per year and the remuneration of other members of the Board is EUR 30,000 per year. However, Board members Juho Frilander and Vesa Koskinen shall not be paid any fees from the Board activities. For the financial year ended 30 September 2019, the fees paid to the members of Musti’s Board totaled EUR 150,000.
The company’s Board of Directors appoints the CEO and decides on the terms of the CEO’s service. The Board of Directors decides also on the remuneration and its terms of the CEO and the members of the management team. The remuneration of the CEO and other members of the management team consists of fixed monthly salary and a bonus. The terms of the bonus is decided by the parent company’s board of directors annually.
The CEO of the Group is entitled to a statutory pension and the retirement age is determined by the statutory earnings-related pension scheme. The retirement age of the CEO is 63 years under current legislation. The CEO has a life insurance and supplementary pension insurance on behalf of Musti Group. He receives the supplementary pension at the age of 63.
The company shall publish its Remuneration Statement on the company’s website in accordance with the governance code.
The CEO’s period of notice is 6 months and he/she has a right for the notice period salary and for the performance bonuses until the date of the notice. In addition, when terminated by the company, the CEO is entitled, under certain conditions, to an amount equivalent to a six months’ full salary.
The Board of Directors decides on the company’s remuneration schemes and plans, such as short- and long-term incentive schemes as well as pension arrangements upon the recommendation of the Remuneration Committee and in accordance with the company’s effective remuneration policy.
The company operates a bonus scheme, which is determined by the Board of Directors of the company upon the recommendation of the Remuneration Committee and in accordance with the company’s effective remuneration policy. The CEO and the members of the management team are eligible to participate in the bonus scheme in accordance with the company’s bonus policy. The payment of annual bonuses is conditional upon attainment of key performance targets of the company.
The bonuses of the CEO and the management team are based on personal targets and certain profitability targets set for the financial year. The maximum performance bonus is equivalent to an eight months’ full salary for the CEO and a four months’ full salary for the management team.
The company values competitive compensation for management and employees and it will further develop the compensation and incentive schemes as a part of Company’s everyday business. The Board of Directors of the company has discussed on a long-term incentive scheme and has decided to found a long-term incentive program after the initial public offering. The incentive program is expected to correspond with market practices of listed companies of Musti Group’s size and business profile.