President and CEO
The CEO takes care of the administration of Varma according to the regulations and instructions of the Board of Directors. The CEO sees to it that the accounts of the company are in compliance with the law and that its financial affairs have been arranged in a reliable manner.
It is the duty of the CEO to promote the interests of the company. The CEO manages the company according to sound business principles and principles of good governance and risk management. The CEO represents Varma in matters that fall within the sphere of tasks laid down in legislation.
Varma’s President & CEO is Risto Murto, b. 1963 (CEO of Varma since 2014; 1st Deputy Chairman of the Board of the Finnish Pension Alliance TELA; Chairman of the Board of the University of Oulu; and member of the Boards of Sampo Plc, Wärtsilä Corporation, and the Federation of Finnish Financial Services; member of the Financial Committee of the Finnish Cultural Foundation).
The CEO is assisted by Varma’s Executive Group, which has, in addition to the CEO, seven management representatives and two staff representatives as members. The task of the Executive Group is to steer and develop Varma’s operations so that the strategic objectives approved by the company’s Board of Directors are met.
Decisions on the remuneration and benefits of the CEO and the other members of the Executive Group are made by the Board of Directors. Information on these is presented in a separate Salary and Remuneration Statement.
The CEO and the members of the Executive Group and the persons under their guardianship and the companies under their control have been included in Varma’s internal related-party register. Selling or otherwise transferring the Company’s assets to those included in the register as well as acquiring assets from them are subject to a separate decision by the Board of Directors. No such transfers took place in 2015.
When deciding on new representation in Boards of Directors or Supervisory Boards, the decision concerning the President and CEO is made by the Board of Directors following a discussion by the Nomination and Compensation Committee, on a proposal by the Chairman of the Board of Directors. The Chairman of the Board of Directors decides on the new representation in the Board of Directors or Supervisory Board of a member of the Executive Group in a corporation that is not Varma’s subsidiary on the President and CEO’s proposal using the “one-over-one” principle, whereas representation in Varma’s subsidiary’s Board of Directors or Supervisory Board and Varma’s representation in the earnings-related pension sector’s co-operative bodies is decided by the President and CEO. When deciding on representation, the decision-maker evaluates:
- whether the representation is, due to possible conflicts of interest, likely to undermine trust in the realisation of the independence requirements of an earnings-related pension company, which are highlighted in legislation.
- whether the representation will have adverse effects on the decision-making of Varma’s investment operations.
The Investment Committee deals with major investment issues that are submitted to the CEO for decision. The Committee has the CEO and the executives responsible for investment operations as its members. The Committee prepares the investment proposals for the Board of Directors and makes decisions on matters in which it is authorised under the investment plan approved each year by the Board of Directors, and which have not been delegated to a lower level. The Committee also monitors investment risks.