Remuneration for the Group Management Board members

Based on the Remuneration Committee's preparatory work, Kesko's Board of Directors makes decisions on the remuneration to the Group Management Board members responsible for lines of business. As for the other Group Management Board members, Kesko's Board of Directors makes decisions on the performance bonus principles and share awards. Other decisions regarding remuneration are made by the President and CEO, based on preparatory work by the head of HR, within the limits set by the Chairman of the Board's Remuneration Committee.

The salaries, performance bonuses, share awards and fringe benefits paid to Group Management Board members (excluding Helander) in 2020-2021 are depicted below. Salaries, performance bonuses, share awards and fringe benefits are reported on a cash basis.

Salaries, bonuses and fringe benefits for Group Management Board members other than President and CEO (€)

 Description

2021

2020

Fixed monetary salary

2,362,530

1,914,690

Performance Bonus

643,833

532,023

Share awards *

2,714,706

2,905,134

Car and mobile phone benefits

156,759

131,748

Total

5,877,827

5,483,595

* The euro value of the share awards has been calculated using the trade-weighted average share price of the dates of assignment 19 March 2021 and 12 March 2020. The euro values of the share awards are gross amounts, from which the applicable withholding tax has been deducted and the remaining net amount has been paid in shares. The gross number of Kesko B shares transferred in 2021 was 210,790 and the net number was 105,396 shares. The gross number of Kesko B shares transferred in 2020 was 226,800 and the net number was 113,408. The numbers are reported as shares after the share issue without payment registered on 30 April 2020 (post-split).

Retirement benefits for Group Management Board members other than the President and CEO

The old-age pension age for Group Management Board members is 63 years.

In 2021, three Group Management Board members were members of Kesko Pension Fund (four in 2020). Their amount of old-age pension is 66% of pensionable earnings for the ten (10) years preceding the retirement. Their supplementary pensions are determined based on the rules of Kesko Pension Fund and their personal service contracts. Their supplementary pensions are based on a defined benefit plan.  The old-age pensions of the other Group Management Board members are determined based on the general provisions applicable to employees’ pensions in Finland (the Finnish Employees’ Pensions Act, TyEL). In addition, they have a defined contribution supplementary pension. 

Period of notice and termination benefit for Group Management Board members other than the President and CEO

The period of notice for the other Group Management Board members is six (6) months if the service contract is terminated by the Company, and six (6) months if the executive resigns. If the Company terminates the contract for a reason other than a material breach of contract by the executive, and the executive does not retire on an old-age pension or some other pension, the executive is paid, in addition to the salary for the period of notice, a compensation corresponding to the combined amount of 6-12 months' monetary salary and fringe benefits.

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