Remuneration scheme for the President and CEO and members of the Executive Group
Remuneration and other benefits of the President and CEO
The Board of Directors appoints the President and CEO and decides on the terms of his/her employment relationship.
Varma’s President and CEO is Risto Murto. His remuneration and fringe benefits (taxable earnings) in 2015 totalled EUR 719,726; in addition, in 2015 he received EUR 123,630 as a deferred bonus under the separate scheme for Investment Operations for 2011. Under the incentive scheme for key persons, Murto’s maximum bonus is no more than 12 months’ worth of salary. The incentive scheme for key persons is described above in section 1.3.1. Murto is not covered by the separate scheme for Investment Operations (see section 1.3.2 above) or the incentive scheme for personnel (section 1.3.3).
President and CEO Risto Murto’s fixed monthly salary is EUR 43,000. The President and CEO does not have a company flat. The value of his company car benefit is EUR 855/month, and the value of his mobile phone benefit is EUR 20/month. The tax value of the car benefit is included in his fixed monthly salary.
CEO Risto Murto’s retirement age is 63 years. His pension benefits under supplementary pension insurance will be 60% of the pensionable salary of the supplementary pension. The pensionable salary is calculated on the basis of the salary, including performance pay, over the preceding 10 full calendar years. The costs (provisional contribution) of Murto’s supplementary pension agreement amounted to EUR 73,575 in 2015.
The president and CEO has a period of notice of six months, in addition to which he is entitled to severance pay equal to six months’ salary.
Remuneration and other benefits of the members of the Executive Group
The Board of Directors decides on the remuneration and other terms of employment of the members of the Executive Group. Members of the Executive Group are covered by the incentive scheme for key persons as described above (see 1.3.1).
In 2015, the salaries and fringe benefits (taxable earnings) of the members of the Executive Group, excluding the President and CEO, were EUR 1,512,506 and performance pay EUR 355,120 (for 2014), totalling EUR 1,867,626. The costs (provisional contributions) for the members of the Executive Group’s supplementary pension agreements amounted to EUR 550,049 in 2015.
The members of the Executive Group do not have a company flat. The members of the Executive Group have the option of a company car benefit and they have a mobile phone benefit. The tax value of the car benefit is included in the fixed monthly salary.