Based on the Remuneration Committee's preparatory work, Kesko's Board makes decisions on the personal compensation, other financial benefits, the performance bonus scheme criteria and the performance bonuses paid to the Group Management Board members responsible for lines of business. As for the other Group Management Board members, Kesko's Board makes decisions on their performance bonus principles. The President and CEO makes decisions on the compensation and other financial benefits of the Group Management Board members other than those responsible for lines of business within the limits set by the Chair of the Board's Remuneration Committee.
The salaries, fringe benefits and performance bonuses, as well as other financial benefits paid to the Group Management Board in 2014–2015 are presented in the following tables.
If given notice by the Company, a Group Management Board member is paid a salary for a 6–12-months' period of notice, a separate lump sum termination benefit corresponding to his/her 6–18-months' non-variable monetary salary and fringe benefits (a total of 12–24 x the monetary salary + fringe benefits for the month of notice). If he/she resigns, he/she is entitled to the salary for the period of notice.
Retirement benefits in 2015
The statutory pension provision of the members of the Group Management Board is provided through a pension insurance company. In 2015, four Group Management Board members were members of Kesko Pension Fund's department A, closed in 1998, and their supplementary pensions are determined based on its rules and their personal service contracts. Their retirement benefits are based on a defined benefit plan. The retirement benefits of the other Group Management Board members were determined based on the general provisions applicable to employees' pensions in Finland (TyEL, the Employees' Pensions Act). The retirement benefits of President and CEO Helander are reported in more detail in the section concerning him. Kesko has not paid pension insurance contributions incurred on executives' memberships of Kesko Pension Fund's department A for several years, nor in 2015, as the department's investment earnings covered the payable supplementary pensions and changes in the pension liability.
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