President and CEO Mikko Helander’s salary, remuneration and other financial benefits in 2016
President and CEO Mikko Helander’s personal compensation, other financial benefits, performance bonus scheme criteria and performance bonuses paid are decided by Kesko's Board of Directors based on the Remuneration Committee's preparatory work. A written managing director's service contract, approved by the Board, is in force between the Company and the President and CEO. Helander has been the Company’s President and CEO and the Chair of the Group Management Board since 1 January 2015.
The salaries, fringe benefits and performance bonuses paid to Helander and his other financial benefits in 2015-2016 are presented in the following tables.
Period of notice and termination benefit
Helander’s period of notice is twelve (12) months if the managing director’s service contract is terminated by the Company and six (6) months if Helander resigns. If the Company terminates the contract for a reason other than a material breach of contract by the managing director, and the managing director does not retire on an old-age pension or some other pension, the managing director is paid, in addition to the salary for the period of notice, a compensation corresponding to the combined amount of 12 months' monetary salary and fringe benefits.
Retirement benefits and insurances
President and CEO Mikko Helander's old-age pension age has been agreed to be 63 and the amount of his old-age pension to be 60% of his pensionable earnings in accordance with the Employees' Pensions Act (TyEL). The pensionable salary is determined based on his fixed monetary salary, performance bonuses and fringe benefits for the last ten years. The cost of the supplementary pension for the period, calculated on an accrual basis, was €1.0 million and the related pension asset, recognized in the balance sheet, was €0.6 million. The pension cost of the President and CEO's statutory pension provision was €0.2 million.
Health and life insurance
A health insurance and a life insurance have been taken out for Helander.
As a result of the Market Abuse Regulation ((EU) N:o 596/2014, ”MAR”) that entered into force on 3 July 2016, the information on the Shareholdings of public insiders pages is not updated after 3 July 2016 and will be removed from the link referred to above on 2 July 2017.