Remuneration

Remuneration of the President & CEO and other Group Executive Team members

The Board of Directors decides on the remuneration of the President & CEO and other members of the Group Executive Team and on the grounds for their remuneration. The salaries of the President & CEO and the members of the Group Executive Team consist of a monthly salary, ordinary fringe benefits and short-term incentive bonuses. The purpose of Enersense’s remuneration system is to promote the company’s competitiveness and the achievement of its goals and strategy. Incentive schemes are also aimed at rewarding good performance and supporting commitment.

Short-term incentives consist of an annual performance bonus, which is up to 25% of the annual income. The Board of Directors annually confirms the terms and criteria for performance bonuses for the members of the Group Executive Team. Any performance bonuses are based on the achievement of the set financial targets, such as the EBITDA and occupational safety goals, at Group and/or business unit level. Short-term incentive programmes are valid for one year at a time.

The company does not have share-based bonus systems or option programmes.

The pension benefits of the President & CEO and other members of the Group Executive Team are determined in accordance with the law and general practice. Enersense has not taken out supplementary pension insurance policies for the President & CEO or the members of the Group Executive Team.

Salaries are paid monthly in cash. Salaries include fringe benefits, such as a company car and phone. The fixed salary of President & CEO Jussi Holopainen is EUR 273,088.80 in 2021. The CEO was paid various bonuses and incentive bonuses totaling EUR 166,000.00 in 2020.

The salaries and fees of the other members of the Group Executive Team in 2020 were EUR 1,050,976.64 in total, including EUR 41,459 in fringe benefits and EUR 162,532 in short-term incentive bonuses.

Terms of employment of the members of the Group Executive Team

The employment contract of Enersense’s President & CEO has a mutual notice period of six (6) months. If Enersense terminates the employment contract, the President & CEO is entitled to a one-off compensation payment equalling their six (6) months’ salary under certain conditions. The retirement age of the President & CEO is determined in accordance with the statutory employment pension scheme.

The employment contracts of the members of the Group Executive Team have a notice period of three to six months. In addition, it has been agreed that if Enersense terminates the employment contract of CFO Mikko Jaskari, he is entitled to a one-off compensation payment equalling his four (4) months’ salary.

Remuneration of the Board of Directors

In accordance with the Limited Liability Companies Act, the fees to be paid to the members of the company’s Board of Directors are determined by the shareholders at the Annual General Meeting.

At Enersense’s Annual General Meeting on 19 March 2021, it was decided that the following monthly fees be paid to the members of the Board of Directors:

  • Chair of the Board: EUR 3,000
  • Other members of the Board: EUR 2,000

In addition, the Annual General Meeting decided that the following meeting fees be paid to the members of the Audit Committee and the Remuneration Committee:

  • Chair of the Committee: EUR 700 per meeting
  • Other members of the Committee: EUR 500 per meeting

The Board of Directors’ fees are paid in cash. In addition, travel expenses are reimbursed in accordance with the company’s current policy.