Remuneration consists of three components: the basic salary including fringe benefits, profit- and performance-related remuneration (bonuses), and long-term incentive plans. Depending on the employee's position, different combinations of the above-mentioned elements are applied.
Raute Group's profit-related bonus system includes separate systems for the President and CEO, the Group's Executive Board, key personnel, and the entire personnel. A person can receive bonuses from no more than one system at a time. The Board of Directors annually confirms the general principles, maximum amounts and calculation methods for the remuneration systems.
Payment of bonuses within the bonus systems for the President and CEO, the rest of the Group's Executive Board and key personnel is dependent on the person's performance and task-related personal targets for the entire year. Profit-related bonuses are paid once a year after the Annual General Meeting has confirmed the financial statements.
Payment of bonuses within the bonus system for the rest of the personnel is dependent on the Group's profit and the targets set for the team in question. Profit-related bonuses are paid out for each quarter year provided that the Group has made a positive cumulative profit. The calculation method, amount and the maximum total amount of bonus will be decided on annually by the Board of Directors, and the system will remain in force for one year at a time.
Long-term incentive plans include performance and share value based long-term incentive program 2017-2020 and share-based incentive program 2014-2022.
Remuneration policy for Governing Bodies
Raute Corporation's Board of Directors has approved a Remuneration Policy for Governing Bodies on February 12, 2020. The Remuneration Policy for Governing Bodies was considered in the Annual General Meeting held on March 31, 2020.
Annual General Meeting held on March 31, 2021 approved the Remuneration Report for Governing Bodies 2020. The resolution is advisory.
Remuneration statements and reports