remuneration for the President and CEO

Salary, remuneration and other financial benefits for President and CEO Mikko Helander 

President and CEO Mikko Helander’s personal remuneration, 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 Chairman of the Group Management Board since 1 January 2015. 

The fixed monetary monthly salary of the President and CEO is €75,000. The President and CEO’s performance bonus scheme (short-term commitment and incentive scheme) can be found here and share-based commitment and incentive scheme can be found here.

The salaries, performance bonuses, share awards and fringe benefits, paid to Helander in 2020-2021 and amount paid in supplementary pension plan are depicted below. The fixed monetary salary includes holiday pay. Salaries, performance bonuses, share awards and fringe benefits are reported on a cash basis.

Salaries, bonuses and fringe and retirement benefits for the president and CEO (€)

Description

2021

2020

Fixed monetary salary

935,258

954,000

Performance Bonus

787,500

712,500

Share awards*

2,625,028

1,298,739

Car and mobile phone benefits

33,997

32,143

Total

4,381,783

2,997,382

Suplementary pension plan

1,000,000

1,350,000

* 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 108,832 and the net number was 54,416 shares. The gross number of Kesko B shares transferred in 2020 was 96,292 and the net number was 48,148. The numbers are reported as shares after the share issue without payment registered on 30 April 2020 (post-split).

 
Retirement benefits of President and CEO

Old-age pension for the President and CEO begins at 63 and the amount has been agreed to be 60% of the President and CEO’s pensionable earnings in accordance with the Finnish Employees' Pensions Act (TyEL) for the ten (10) calendar years preceding the retirement. The pension is based on a defined benefit plan.

In 2021, €1,000,000 was paid in the supplementary plan (€1,350,000 in 2020).

Period of notice and termination benefit for President and CEO

The period of notice for the President and CEO 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 President and CEO, and the President and CEO does not retire on an old-age pension or some other pension, the President and CEO 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. 

Insurance

A health insurance, life insurance and leisure travel insurance have been taken out for Helander.

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