The Annual General Meeting passes resolutions on the remuneration paid to the members of the Board of Directors. For the financial year 2009, according to the resolution passed by the Annual General Meeting held on 17 March 2009, a fixed emolument of EUR 76 000 was paid to the chairman of the Board of Directors, EUR 49 000 to the vice chairman and EUR 38 000 to each of the other members of the Board of Directors. About 50 per cent of the annual emoluments were paid in the form of the company’s shares and the remainder in cash. A meeting fee of EUR 500 per Board meeting was paid to all the members of the Board of Directors. For the 2009 financial year, the members of the Board of Directors were paid cash emoluments totalling EUR 218 725.33 and share emoluments of 13 227 of the company’s Series B shares. The value of the emolument paid was a total of EUR 367 000.
Emoluments paid to the members of the Board of Directors
The remuneration and benefits of the CEO and other Management Committee members are determined by the Board of Directors.
The total amount of the salary, emoluments and fringe benefits paid to the chief executive officer in 2009 was EUR 564 780, of which fringe benefits accounted for EUR 17 820. In the chief executive officer agreement, the CEO’s pension age is set at 60. The pension is determined in accordance with the Employees’ Pensions Act and a separate insurance plan which is taken out by the company. The pension is 60% of pensionable salary. The CEO’s period of notice is specified bilaterally at 6 months. Should the company terminate the agreement, the CEO has the right to compensation corresponding to 12 months of fixed salary upon expiry of the termination period. In addition, the CEO is entitled to extra compensation corresponding to 12 months of fixed salary one year after expiry of the termination period if the CEO has not retired on an employment, voluntary or health-based pension funded by the company. Should the company terminate the executive post relationship on cancellation grounds due to personal reasons, neither of said classes of compensation shall be paid.
The retirement age for members of the Management Committee is 60-63. If retirement is at the age of 63, the pension is determined in accordance with the legislation on basic pensions. In the case of earlier retirement, the pension is determined either in the same way as for the CEO or is accrued on a defined contribution basis. Each month, the company then pays an agreed percentage of earnings into a pension plan.
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