The Group makes use of annual performance-based systems of rewards and incentives to promote the achievement of short-term objectives. The amount of the incentive is generally influenced by the earnings reported for the financial year and the personal job contribution.
The principles of determining the incentive bonuses of the CEO and the other members of the Management Committee are confirmed annually by the Board of Directors on the basis of a proposal prepared by the Appointments and Compensation Committee. Bonuses are determined primarily on the basis of the Group’s earnings and profitability trend such that the determining factors are the Group’ s profit before taxes net of other operating income, the Group’s return on capital employed and the key figures for the divisions, which are derived from the aforementioned. The maximum incentive is generally no more than 25 per cent of annual salary income, but the limit can be exceeded on a sliding scale in respect of Group targets. The Annual General Meeting held on 21 March 2006 and on 16 March 2010 passed a resolution on a new key employee share option programme, which is part of the incentive and commitment building scheme for management.
Stockmann plc
P. O. Box 220
00101 Helsinki
Phone: +358 9 1211
Corporate Communications
Stockmann plc
P.O.Box 70
00621 Helsinki, Finland
Phone: +358 9 121 51