The HR Committee reviews the President and CEO’s performance. Based on this review and other relevant facts, the Board determines the total compensation package paid to the President and CEO.
The compensation package includes a base salary, fringe benefits, a pension scheme, performance-related annual variable pay and a long-term, performance-related share plan. The monthly salary of the President and CEO is EUR 50 000 excluding benefits as of January 1, 2017. In addition, the pension benefit of the President and CEO is 20 percent of his annual base salary. The pension scheme for the President and CEO sets his retirement age at 63.
The President and CEO’s annual variable pay is based on the financial performance of the company and is, at maximum, 60 percent of the President and CEO’s annual base salary. Additionally, the Board of Directors can, but is not required to, set certain strategic targets that can trigger an additional incentive, which can be a maximum of 50 percent of the President and CEO’s annual base salary. For the period September 2015–December 2016, 50 percent of the maximum bonus is guaranteed pro rata to the time of employment.
The President and CEO is entitled to participate in the Company’s long-term incentive program. According to the initial allocation, the maximum reward for the discretionary period 2014–2016 is 48,000 shares (gross), the maximum reward for the discretionary period 2015–2017 is 48,000 shares (gross) and the maximum reward for the discretionary period 2016–2018 is 48,000 shares (gross).