Remuneration
The Company does not have any current option plan or other incentive schemes linked to share price performance.
Lemminkäinen Group’s performance-related pay scheme for senior executives comprises an annual bonus based on the Company’s result, and a long-term retention plan based on the creation of economic value added. Lemminkäinen’s Board of Directors confirms the parameters of performance-related pay scheme annually on the basis of a proposal from the Remuneration and Appointments Committee.
The result-based annual bonus is determined on the basis of the operating profit or return on investment in the relevant business sector and can be a maximum of 30% of annual salary. The payment of retention bonuses is based on Lemminkäinen’s consolidated financial statements and the economic value added calculated on the basis of them. Initially, the retention bonus accrues over a three-year period. The first third of the accumulated total is paid at the beginning of the third year. Thereafter the accmulated bonus accrues annually and a third of the total is paid each year. A retention bonus may be a maximum of six month’s salary.
The Managing Director of Lemminkäinen Corporation and his immediately subordinate directors and managing directors are entitled to retire on reaching 60 years of age. As a consequence of the supplementary pension insurance provided by the Company, their pensions at that time will be 60 per cent of pensionable salary. If the employment contract of a person within the scope of this scheme is terminated before he or she reaches sixty years of age, he or she shall not be the beneficiary of a paid-up free policy.
Updated 7.3.2008