The remuneration schemes in place at Mandatum are based on the strategy defined by the Board of Directors and they support the achievement of long-term goals. The aim of remuneration is to encourage and motivate employees to do their best and exceed the targets set for them, while always taking into account the interests of customers. Risk sensitive, fair and rewarding remuneration mechanisms enhance the company’s long-term economic success, competitiveness and sustainable business.
Remuneration in Mandatum is based on the Group’s Remuneration Principles, which are applied to the remuneration of all Group companies’ personnel and, where applicable, also to the Group CEO.
Remuneration complies with the ethical principles and the requirements of legislation and other regulations applicable to Mandatum, which may vary depending on industry. Mandatum plc’s Board of Directors reviews the Remuneration Principles annually and always when deemed necessary due to regulatory changes, changes in relevant labour markets or changes within Mandatum.
Mandatum’s remuneration schemes are designed in accordance with risk management principles and practices. Remuneration schemes may not create conflicts of interest or encourage or incentivise excessive or unacceptable risk-taking. Before variable remuneration is paid, the risk taken is assessed and it is ensured that the payment of variable remuneration does not jeopardise the company's solvency.
In addition, Mandatum applies risk adjustment processes to the variable remuneration paid to identified staff members. The Board of Directors of each Mandatum Group company determines and approves annually the list of persons (identified staff) who effectively run the company and whose professional activities have a material impact on the risk position of the company in question.
Part of the variable remuneration payable to members of identified staff shall be deferred for a specified period in accordance with the regulations applicable to each company at the time. At the end of the deferral period, a retrospective risk assessment is carried out and the Board of Directors decides whether the deferred variable remuneration can be released. The Board of Directors may decide to cancel in full or in part the release of variable remuneration if internal or external rules for the business or laws have been breached or unacceptable risk-taking has materialised. The Board of Directors may also decide to clawback already paid variable remuneration in part or in full if the reward proves in retrospect to have been paid out on the basis of erroneous information or if internal or external rules or the law have been breached.
Mandatum requires that employees do not use personal hedging strategies or take out insurance policies to reduce risk exposure.
Fair and competitive fixed remuneration is the basis of total remuneration. Fixed salary is based on the demands of the job, the level of responsibility, and the employee’s professional skills and experience. Mandatum is committed to gender equality in pay and applies the principle of equal pay, according to which same pay is paid for the same or equivalent work. However, pay differences may exist on gender-neutral, objective, and impartial grounds.
Remuneration may be complemented by various supplementary pension plans. Supplementary pension plans shall be of a defined contribution nature.
Fixed salary is supplemented with variable incentive schemes. Performance-based incentive schemes reward the achievement of objectives in accordance with predefined metrics and criteria, and they take into account, how the selected performance criteria support the implementation of the Group’s strategy and value creation, and promote the key themes identified in the sustainability strategy. Sustainability indicators that are relevant to Mandatum’s business operations are included, where applicable, in the Group’s short- and long-term incentive programs.
Mandatum has various short-term incentive programs in place that cover all Group personnel. In addition, there is a long-term incentive program for the Group’s executive management and key personnel. The design of incentive programs is guided by the Group’s Remuneration Principles.
Further information on the long-term incentive programs can be found at: Long-term incentive schemes - Mandatum
The ratio between fixed and variable remuneration may vary between personnel groups and depending on the industry. There is an appropriate balance between fixed and variable remuneration so that the remuneration structure does not guide or encourage risk-taking beyond the risk-bearing capacity or create conflicts of interest.
The Annual General Meeting, the Shareholders’ Nomination Board, the Board of Directors of Mandatum plc, and Mandatum plc Board’s Remuneration Committee are involved in the administration and decision-making related to the remuneration of the governing bodies.
The Annual General Meeting decides, based on a proposal by the Shareholders’ Nomination Board, on the remuneration of the members of the Board of Directors as well as on the remuneration of the Board committees and the Nomination Board in accordance with the Remuneration Policy for Governing Bodies of Mandatum plc. The remuneration of the full-time Chairman of the Board is decided by the independent members of the Board of Directors based on a proposal by the Remuneration Committee and within the framework of the Remuneration Policy for the Governing Bodies.
The Remuneration Committee is entrusted to prepare and present proposals for the General Meeting on the Remuneration Policy for Governing Bodies of Mandatum plc and the Remuneration Report for Governing Bodies. The Shareholders’ Nomination Board inspects the Remuneration Policy for Governing Bodies with regard to the remuneration of the Board members prior to the General Meeting.
The Remuneration Committee also prepares Mandatum Group’s Remuneration Principles and incentive schemes as well as the payments to be made under the incentive schemes for the Board of Directors approval. Furthermore, the Remuneration Committee prepares proposals for the Board of Directors on the remuneration of the Group CEO and the Group Management Team.
Remuneration Principles and remuneration schemes are reviewed at least once a year by an independent party. The Compliance function reviews the regulatory compliance of the remuneration schemes and their implementation in accordance with its remit and reports any significant risks and omissions identified to the Boards of Directors of Mandatum companies.
Further information:
Shareholders' Nomination Board - Mandatum
Remuneration Committee - Mandatum
The Remuneration Policy for the Governing Bodies defines how the remuneration of the Group CEO, and the members of the Board of Directors is arranged. The Remuneration Policy was presented to the Annual General Meeting on 15 May 2024. The Annual General Meeting resolved to support the Remuneration Policy. The resolution was advisory.
The Remuneration Policy for Governing Bodies shall be presented to the General Meeting at least every four years. The application of the Remuneration Policy shall be reported annually in the Remuneration Report for Governing Bodies.
Mandatum plc’s Remuneration Report presents the remuneration paid and earned of the members of the Board of Directors and the Group CEO and discusses the application of the remuneration policy. The Remuneration Report is presented to the General Meeting annually.