Decision-making procedure concerning remuneration

 

The Board of Directors decides, based on the Remuneration Committee’s proposal, on the remuneration and other terms of employment or service relationship and on the remuneration principles for the Group Management Team members. The Group CEO prepares proposals on the remuneration of the Group Management Team members, excluding himself, to the Remuneration Committee.

 

Forms of remuneration

 

The remuneration of the members of the Group Management Team is evaluated annually and is based on the Remuneration Principles applied by the company. The remuneration of the members of the Group Management Team includes a fixed salary, benefits (fringe benefits and other benefits), a supplementary defined contribution pension plan (group pension plan) and possible short- and long-term incentives.

 

Remuneration of the Group Management Team (excl. the Group CEO) in the financial period from 1 October to 31 December 2023

 

Remuneration element	2023* (EUR)
Fixed salary, including holiday pay and fringe benefits	289,931
Short-term incentives	-
Release of previously deferred short-term incentives	-
Long-term incentives	-
Total	289,931
Supplementary pension	-
Extraordinary items	-
Remuneration from other Group companies	-
Total remuneration	289,931

*The presented amounts include remuneration paid to the members of the Group Management Team (excl. the Group CEO) during Mandatum plc's first financial period from 1 October to 31 December 2023. During the financial period, the Group Management Team consisted of six members, excluding the Group CEO.

 

Fixed salary and other benefits

 

The members of the Group Management Team are paid a fixed salary, which can include fringe benefits offered by the company to personnel, such as a phone benefit, meal benefit, car benefit, apartment benefit and other ordinary benefits. The meal benefit and phone benefit are paid on top of the salary in accordance with the company’s common practice. Insurance benefits include health, travel and accident insurance, life and disability insurance and liability insurance for management.

 

Short-term incentives

 

The Board of Directors decides on one-year short-term incentive programs separately each year and the cash payouts the following year. The members of the Group Management Team participate in the one-year short-term incentive program where the payout is based on financial and non-financial performance criteria. In 2024, the short-term incentive targets of the Group Management Team members consist of key targets of Mandatum Group and segment/business unit, including both qualitative and quantitative criteria. A threshold level has been set for the payments from the short-term incentive program.

The maximum amount that can be paid to the members of the Group Management Team from the short-term incentive program corresponds to six (6) or twelve (12) months’ fixed salary, including the part paid as a performance-based group pension contribution. Part of the payout shall be deferred for at least three (3) years as required in the regulatory framework applicable to the company.

The members of the Group Management Team may transfer part of their short-term incentive payout to the personnel fund under the same terms as for Mandatum’s other personnel.

 

Long-term incentives

 

The Board of Directors decides on long-term incentive schemes and the share payouts made from the schemes. The Board of Directors of Mandatum plc has on 19.3.2024 decided to establish a new performance- and share-based long-term incentive scheme in which the Group Management Team members participate. In addition, certain members of the Group Management Team participate in the long-term incentive scheme 2020:1 for Sampo Group’s key employees, to which they were invited to participate in 2020. 

More information on the long-term incentive schemes and the Group Management Team members' shares in them can be found here on the webpage. 

 

Pension

 

In addition to Finland's statutory pension system, the members of the Group Management Team are entitled to a group pension plan where the premium is determined based on the outcome of Mandatum Group key targets used in the short-term incentive program. The retirement age according to the group pension plan is 60 years for the Group Management Team members.

 

Termination of the employment relationship

 

The notice period for the Group Management Team members is determined in accordance with the Employment Contracts Act or the terms and conditions of the employment contracts. The notice period is at least one month and, when determined based on the Employment Contracts Act, a notice period based on the number of employment years is applied. The members of the Group Management Team are entitled to salary during the notice period.

The members of the Group Management Team are not entitled to benefits after the employment relationship ends.