The Human Resources Committee reviews the President and CEO’s performance and prepares the proposal for the President and CEO’s remuneration. External market data and advisers are used to support the proposal preparation and the performance review. Based on the Human Resources Committee's evaluation, market benchmarking and other relevant facts, the Board determines the total remuneration elements of the President and CEO.
The compensation package of the Interim CEO includes a fixed base salary, fringe benefits, a defined pension scheme in addition to the Finnish statutory pension, performance-related annual variable pay and a long-term, performance-related share plan.
The annual short-term variable pay is based on the financial performance of the company and is, at maximum, 50 percent of the Interim CEO’s annual base salary.
The Interim CEO is entitled to participate in the Company’s long-term incentive programs which are described under section Long-term Incentive Plans. He has an obligation to continue to own at least 50 percent of the shares earned annually through the Performance Share Plan until his ownership of the Company shares equals their annual salary.
The remuneration of the Konecranes President and CEO in 2018 is shown under the section “Remuneration of Group Executive Board members and other executives reporting directly to the President and CEO”.