REMUNERATION STATEMENT 2017
This remuneration statement has been prepared in accordance with the Finnish Corporate Governance Code 2015.
1. DECISION MAKING IN RELATION TO REMUNERATION
This section describes the decision-making procedure concerning the remuneration of the members of the Board of Directors (Board), the President & CEO and other executives.
The Annual General Meeting (AGM) decides on the remuneration and other financial benefits of the members of the Board and the committees of the Board annually based on a proposal by the Nomination Committee.
The Board decides, based on the proposal made by the Compensation Committee, on the remuneration principles and remuneration of the President & CEO. The remuneration and terms of employment of the Group Leadership Team (GLT) are decided by the Board on the basis of a proposal from the President & CEO. The Board approves all Group-wide incentive plans for senior management and key personnel.
The AGM decides on the use of company’s shares for share based incentives and may authorize the Board to decide on the issue of shares and special rights entitling to shares. The information about the valid authorizations of the Board concerning the remuneration, as well as any decisions made by the Board as part of remuneration are described in section 3.
2. MAIN PRINCIPLES OF REMUNERATION
This section describes the main principles of remuneration relating to the remuneration of the Board members, the President & CEO and other executives.
Remuneration at HKScan Group is based on the principles of remuneration approved by the Board, and attention is paid to the Group’s strategic objectives and financial performance. A motivating remuneration scheme is used as a tool to elicit the commitment to the Group of core expertise and key employees.
HKScan Corporation’s remuneration scheme consists of base salary, benefits, as well as short-term and long-term incentive schemes.
Board of Directors
The remuneration of the Board members consists of annual fees based on memberships of the Board and its committees, and in addition members receive an attendance payment for each Board or Committee meeting. The company has no share-based incentive scheme for Board members, neither are the members of the Board covered by the company’s incentive or pension plans. Board members receive no separate meeting attendance fees for serving on the Boards of Directors of the Group’s subsidiaries or associated companies.
The AGM on 6 April 2017 resolved the annual remuneration payable to the members of the Board as follows: