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 President and 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 President and CEO’s annual short-term variable pay is based on the financial performance of the company and is, at maximum, 100 percent of the President and CEO’s annual base salary.
The President and 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 100 percent of the Net Shares until the President and CEO holds shares equals the annual base salary, and thereafter, 50 percent of the Net Shares until the CEO holds Shares at least worth 150 percent of the 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”.