The Board evaluates and decides on the total remuneration of the Group Executive Board members and other executives reporting directly to the President and CEO.
The base salaries and fringe benefits of the Konecranes President and CEO and other Group Executive Board members reflect the performance and individual job responsibilities, experience, skills and knowledge.
The Group Executive Board members’ annual variable pay is based on the Group’s financial performance and on business area performance, if applicable for the person, and on the individual’s performance against predefined targets. The annual variable pay percentage is based on the individual responsibilities and is at maximum 50 to 75 percent of the individual annual base salary (2/3 of the maximum being the target level).
Konecranes Group Executive Board members are entitled to participate in the Company’s long-term incentive programs. The members of the Konecranes Group Executive Board, including the Interim CEO, have an obligation to continue to own at least 50 percent of the shares earned annually through the Performance Share Plan until their ownership of the Company shares equals their annual salary. More information on the long-term incentives can be found under section “Long-term Incentive Plans”.
The Finnish members of the Group Executive Board participate in a defined group pension insurance scheme, which can be withdrawn from at the age of 60. However, the retirement age is set according to the Finnish Employees Pensions Act (TyEL). The Finnish Group Executive Board members have life insurance and disability insurances. The non-Finnish members participate in a contribution-based pension plan and have local insurance cover.