Remuneration Front pageRemunerationRemuneration Enersense’s remuneration principles have been designed to attract, engage and motivate employees and to provide remuneration elements that are aligned with the interests of the shareholders and to drive the company’s long-term financial success and value creation. The purpose of Enersense’s remuneration system is to promote the company’s competitiveness and the achievement of its goals and strategy. Incentive schemes also aimed at rewarding good performance and supporting commitment to sustainable development. 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. 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. Remuneration of the Board of Directors At Enersense’s Annual General Meeting on 4 April 2024, it was decided that the following annual fees be paid to the members of the Board of Directors: EUR 42,000 for the Chairperson of the Board of Directors; EUR 32,000 for the Deputy Chairperson of the Board of Directors; and EUR 27,000 for all other members of the Board of Directors. In addition, the following meeting fees be paid for each meeting of the Board of Directors and Board Committees: EUR 1,000 per meeting for the Chairperson of the Board of Directors and Chairpersons of the Board Committees; and EUR 500 per meeting for all other members of the Board of Directors and Board Committees. Traveling expenses are compensated in accordance with the company’s policy on compensation of travel expenses in force at the time. For more details on the remuneration of the Board of Directors in 2023, please refer to the remuneration report. Remuneration of the CEO Juha Silvola was appointed as acting CEO of Enersense on 3.5.2024. Silvola’s salary consists of a monthly salary, customary fringe benefits and a short-term incentive bonus. In addition, he participates in the company’s share-based incentive plan. The acting CEO’s fixed monthly salary is EUR 23,000, which includes fringe benefits (such as mobile phone benefit). In addition, a holiday bonus is paid. The short-term incentives consist of an annual performance bonus, which is up to 50% of the annual fixed salary for the acting CEO. For 2024, the performance bonus will be based on the Group’s and business EBITDA, Group cash flow and Group safety in line with the targets set by the Board of Directors. The payment of the short-term incentive is subject to the achievement of the Group’s EBITDA minimum as defined by the Board of Directors. The short-term incentive plan is valid for one year at a time. The company has Performance Share Plans for 2023 – 2025 and 2024-2026 which the acting CEO participates in. The maximum opportunity is 60% of annual fixed salary. Further information on these plans, please refer to Share based incentive plans. The pension benefits of the acting CEO are determined in accordance with the law and general practice. The retirement age of the acting CEO is determined in accordance with the statutory employment pension scheme. Enersense has not taken out supplementary pension insurance policies for the acting CEO. Jussi Holopainen acted as the CEO of Enersense until 3.5.2024. His salary consisted of a monthly salary, customary fringe benefits and a short-term incentive bonus. In addition, he participated in the company’s share-based incentive plan. More detailed information on Jussi Holopainen’s remuneration will be presented in the Remuneration Report 2024. Remuneration of the rest of the Group Executive Team The remuneration of the other members of the Group Executive Team consists of their monthly salary, standard fringe benefits and a short-term incentive bonus. They also participate in the share-based incentive plan. The short-term incentive is an annual performance bonus, which in 2023 amounted to a maximum of 40-50% of annual salary for the other members of the Group Executive Team. The performance bonus is based on the achievement of financial targets set by the Board of Directors, such as adjusted EBITDA and occupational safety targets, either at Group level and/or at the level of the business unit concerned. Short-term incentive programmes are valid for one year at a time. The company has a Performance Share Plans for 2023 – 2025 and 2024-2026 which the other members of the Group Executive Team participate in. The maximum opportunity is up to 50 – 60% of annual fixed salary. Further information on these plans, please refer to Share based incentive plans. The pension benefits of other Group Executive Team members are determined in accordance with the law and general practice. The retirement age of the other members of the Group Executive Team is determined in accordance with the statutory employment pension scheme. For CFO Jyrki Paappa, Enersense has taken out a supplementary pension insurance. Enersense has not taken out supplementary pension insurance policies for the other members of the Group Executive Team. The employment contracts of the members of the Group Executive Team have a notice period of three to six months. It has also been agreed that if the company terminates CFO Jyrki Paappa’s contract of employment, he is entitled to a six-months’ (6) severance payment in addition to the salary for the notice period. The salaries and fees of the other members of the Group Executive Team in 2023 were EUR 1,142,203, in total, including EUR 46,986 in fringe benefits. Remuneration Report 2023 Remuneration Policy Share-based incentive plans The company has the following ongoing share-based incentive plans approved by the Board of Directors of Enersense International Plc directed to the Group key employees. The aim is to align the objectives of the shareholders and key employees for increasing the value of the company in the long-term, to retain the key employees at the company and to offer them competitive incentive plans that are based on earning and accumulating the company’s shares. The President and CEO of Enersense International Plc and the member of the Group Executive Team must own at least 50 per cent of the shares received as a net reward from the share-based incentive plans, until the value of the President and CEO’s shareholding in Enersense International Plc equals to his annual base salary of the preceding year, and until the value of other Group Executive Team member’s shareholding in Enersense International Plc equals to 50 per cent of their annual base salary of the preceding year. Such number of Enersense International Plc shares must be held as long as the membership in the Group Executive Team continues. In general, no reward is paid if the participant’s employment or director contract terminates before the reward payment. Performance Share Plan 2024–2026 The Performance Share Plan 2024–2026 consists of one performance period, covering the financial years 2024–2026. In the plan, the target group is given an opportunity to earn Enersense International Plc shares based on performance. The potential rewards based on the plan will be paid after the end of the performance period, in spring 2027. The rewards of the plan are based on the absolute total shareholder return of the company’s share (TSR) for the financial years 2024—2026, on the Group’s cumulative EBITDA in euro for the financial years 2024—2026, and on the execution of the Group’s ESG program. The rewards to be paid based on the plan correspond to the value of an approximate maximum total of 369,784 Enersense International Plc shares, also including the proportion to be paid in cash. Approximately 40 persons, including the President and CEO and other members of the Group Executive Team, belong to the target group of the plan. Performance Share Plan 2023 –2025 The Performance Share Plan 2023–2025 consists of one performance period, covering the financial years 2023–2025. In the plan, the target group is given an opportunity to earn Enersense International Plc shares based on performance. The potential rewards based on the plan will be paid in one instalment after the end of the performance period, in 2026. The rewards of the plan are based on the absolute total shareholder return of the company’s share (TSR) for the financial years 2023—2025, on the Group’s cumulative adjusted EBITDA in euro for the financial years 2023—2025, and on the Group’s ESG development program. The rewards to be paid based on the plan correspond to the value of an approximate maximum total of 241 100 Enersense International Plc shares, also including the proportion to be paid in cash. Approximately 40 persons, including the President and CEO and other members of the Group Executive Team, belong to the target group of the plan. Restricted Share Plan 2022–2024 The reward from the Restricted Share Plan 2022—2024 is based on a valid employment or director contract and on the continuity of the employment or service during a vesting period. The reward will be paid after the end of a 24–36-month vesting period. The plan is intended for selected key employees only. The rewards to be allocated based on the Restricted Share Plan during the years 2022–2024 correspond to the value of a maximum total of 10 000 Enersense International Plc shares, also including the proportion to be paid in cash.