REMUNERATION REPORT 2020

Aspo Plc’s Remuneration Report was prepared in accordance with the Corporate Governance Code 2020 in force since January 1, 2020, published by the Finnish Securities Markets Association. The Remuneration Report contains a description of compensation paid and other financial benefits awarded to the members of the Board of Directors and the CEO during the financial period from January 1 to December 31, 2020. For comparison, the Remuneration Report also contains compensation paid during the four previous financial periods. This Remuneration Report was published simultaneously with Aspo Plc’s Financial Statements and Management report 2020, and the Corporate Governance Statement 2020.

Introduction

Remuneration of Aspo Plc’s Board of Directors, its Committees and CEO is entirely in compliance with the remuneration policy adopted by Aspo Plc’s Board of Directors on February 13, 2020, and there has been no deviation from the remuneration policy. Moreover, Aspo Plc’s Annual Shareholders’ Meeting of 2020 has made an advisory confirming decision concerning the remuneration policy. Aspo Plc’s Remuneration Policy is available on the company’s website at www.aspo.com/remuneration.

By remuneration, Aspo harmonizes the long term goals striven by its shareholders and management to increase the company’s shareholder value and to fulfil its business strategy. The objective of remuneration is to ensure that resources necessary for the achievement of the strategic goals are committed to the company.

Development during the previous five years of the compensation to Aspo Plc’s Board of Directors has been uneven. Development of the CEO’s salary is also different from year to year as the total remuneration varies annually. This makes it challenging to draw any comparison between the remuneration and the employees’ salary development, and different years are not mutually comparable. The average change of the remuneration of Aspo Plc’s employees has been more even, and the growth has varied between 1.7 and 4.5 percent. The table below shows the development of the remuneration of Aspo Plc’s Board of Directors, CEO and employees, as well as Aspo Plc’s financial development in EUR during the previous five financial periods.

Average remuneration and the company’s financial development (in EUR)

 

2016

2017

2018

2019

2020

Chairman of the Board *)

185,765

117,187

64,800

66,900

70,400

Vice Chairman of the Board

45,300

47,250

48,063

53,500

52,100

Board members on average

29,900

33,075

36,173

36,075

38,000

Total remuneration of the Group CEO

930,596

642,385

924,625

635,168

1,093,834

Fixed salary portion of the CEO

372,265

372,283

381,289

387,367

437,655

Average salary development of an Aspo employee **)

36,810

38,450

39,110

40,490

41,340

Aspo’s operating profit (EUR 1,000)

20,391

23,136

20,555

21,123

19,346

           

*) Chairman of the Board of Directors was a full-time position until April 5, 2017

**) average salary development of an Aspo employee is calculated by dividing the labor costs by the average number of employees during the year.


COMPENSATION OF THE BOARD OF DIRECTORS AND ITS COMMITTEES

Compensation of the Board of Directors was determined by the Annual Shareholders’ Meeting 2020 according to the proposals of the Shareholders’ Nomination Committee.

The total compensation of Aspo Plc’s Board members in 2020 was EUR 274,500.

 

COMPENSATION OF THE BOARD OF DIRECTORS IN 2020 (IN EUR)

Name

Board of Directors

Audit Committee

Remuneration Committee

Total annual remuneration

Nyberg Gustav

64,800

 

5,600

70,400

Kaario Mammu

48,600

3,500

 

52,100

Laine Mikael

32,400

3,500

 

35,900

Pöyry Salla

32,400

1,400

4,900

38,700

Salo Risto *

10,800

 

700

11,500

Vehmas Tatu

32,400

2,100

5,600

40,100

Westerlund Heikki **

21,600

2,100

2,100

25,800

Total

243,000

12,600

18,900

274,500

* Member of the Board until May 4, 2020

** Member of the Board from May 4, 2020

REMUNERATION OF THE GROUP’S CEO

In 2020, the CEO received in salary, compensation and fringe benefits a total of EUR 1,093,834, of which the bonus amount from 2019 was EUR 84,952, the amount based on the Restricted Share Plan published in 2020 was EUR 468,392, and the amount of the voluntary pension insurance was EUR 102,835. On the basis of the share-based incentive plan 2018-2020, no share bonus was paid in 2020, because the bonus plan criteria approved by the Aspo Plc’s Board of Directors were not fulfilled. Under the share-based incentive plan
2018-2020, no share reclamation has been implemented.

TOTAL REMUNERATION OF THE GROUP’S CEO IN 2020 (IN EUR)

Fixed salary

Salary

433,080

Fringe benefits

4,575

Variable remuneration

Short term bonus from 2019

84,952

Share-based incentive from 2019

0

Restricted Share Plan 2020

468,392

Pension benefits

Voluntary Pension Insurance

102,835

Total

1,093,834

In 2020, the maximum amount of the short-term incentive to be paid to the Group's CEO was defined as the amount corresponding to 8 months' salary. The criteria for determining the short-term performance bonus were development opportunities within the individual area of responsibility, such as quantitative goals based on annual result and cash flow, as well as success in the tasks or projects aimed at the fulfilment of the Group strategy. Aspo Plc’s Board of Directors approved the bonus criteria and payments to be made on the basis of these according to the Remuneration Committee’s proposal. The short term bonus paid in 2020 was based on the result criteria set for the CEO and the success of the qualitative projects concerning Group development in 2019. The result achievement level was 35% and the short term bonus paid was EUR 84,952.

Based on the Restricted Share Plan 2020, the CEO was granted 40,000 Aspo Plc shares in June 2020. The reward from the Restricted Share Plan 2020 is based on a valid employment or service contract and a continuing employment during the 36 month vesting period. The compensation was paid in company shares and as a cash portion corresponding the share value. The cash proportion paid in addition to company shares is intended to cover taxes and tax-like levies arising from the compensation, without any other cash amounts being paid. Shares granted as compensation cannot be assigned during the vesting period ending after three years from the transfer of the shares.

The proportion of the short-term and long-term incentive bonuses paid in 2020 of the total amount of remuneration was 50,6%, and the proportion of the fixed annual salary was 40,0%. The proportion of other remuneration (9.4%) consists of voluntary pension insurance.

The retirement age of the CEO is the lowest statutory retirement age minus three years. The CEO has a cash-based voluntary pension insurance where the pension is determined according to the accumulated insurance savings at the moment of retirement.

The period of notice applied in the employment relationship of the CEO is six months. If notice is given by the company, severance pay corresponding to 18 months’ salary will be paid in addition to the salary for the notice period.

 

March 4, 2021

Aspo Plc



Updated: 29.07.2021