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 2019-2020 are depicted below. Salaries, performance bonuses, share awards and fringe benefits are reported on a cash basis.
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 2020, four Group Management Board members were members of Kesko Pension Fund (four in 2019). 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.
Group Management Board composition
In addition to President and CEO Mikko Helander, Group Management Board members in 2020 were: