The Board evaluates and decides the total remuneration of the Group Executive Board members and other executives reporting directly to the President and CEO.
The remuneration of the Konecranes Group Executive Management in 2017 is shown in the table below. The salaries, fringe benefits and short-term incentives paid to the President and CEO and the Group Executive Board amount to a total of EUR 5,434,014.
In addition to annual incentives, Group Executive Board members, excluding CEO, participated in an MHPS Acquisition incentive scheme, in which the maximum payout was 50 percent of the participant’s annual salary if certain criteria were met. The MHPS Acquisition incentive was paid out 6 months after the transaction was closed.
The Group Executive Board members’ annual variable pay is related to Group and if applicable for the person, business area performance and to the individual’s performance against preset targets. The annual variable pay percentage is based on the individual’s responsibilities and is at maximum 50 to 75 percent of the individual’s annual base salary (2/3 from the maximum being the target level).
The long-term incentives are also shown under 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The Finnish members of the Group Executive Board participate in a defined group pension insurance scheme, which can be withdrawn from at the age of 60.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.