Compensation of the management and incentive and pension schemes

In accordance with the Companies Act, the shareholders decide on the compensation for the members of the Company’s Board of Directors in the annual general meeting. As a part of issues to be resolved, the general meeting on 14 April 2018 resolved, that

  • the compensation for the Company’s Chairman of the Board of Directors is EUR 24,053 per month
  • the annual compensation for the Company’s Vice Chairman of the Board of Directors is EUR 8,000
  • the annual compensation for the other members of the Board of Directors is EUR 6,000

An attendance fee of EUR 1,000 per meeting is paid to the elected official members of the Board of Directors. Compensation for travel expenses is payable in the manner and in the amount approved by the Tax Administration.

The Company has not given any guarantees or other contingent liabilities on behalf of the members Board of Directors.

The Board of Directors

The annual remunerations and attendance fees paid to

  • Jarmo Partanen, the Company’s Chairman of the Board of Directors, in 2017 amounted to EUR 303 thousand (EUR 290 thousand in 2016 and EUR 267 thousand in 2015).
  • Jyrki Mäkynen, the Vice Chairman of the Board of Directors, in 2017 amounted to EUR 17 thousand (EUR 19 thousand in 2016 and EUR 17 thousand in 2015)
  • Aila Hemminki, the member of the Board of Directors, in 2017 amounted to EUR 10 thousand.
  • Aki Jaskari, the member of the Board of Directors, in 2017 amounted to EUR 16 thousand (EUR 17 thousand in 2016 and EUR 18 thousand in 2015)
  • Timo Kokkala, the member of the Board of Directors, in 2017 amounted to EUR 16 thousand (EUR 17 thousand in 2016 and EUR 18 thousand in 2015)
  • Heli Korpinen, the member of the Board of Directors, in 2017 amounted to EUR 15 thousand (EUR 16 thousand in 2016 and EUR 15 thousand in 2015)
  • Jarmo Salmi, the member of the Board of Directors, in 2017 amounted to EUR 16 thousand (EUR 16 thousand in 2016 and EUR 18 thousand in 2015)
  • Ari Yli-Kaatiala, the member of the Board of Directors, in 2017 amounted to EUR 6 thousand (EUR 17 thousand in 2016 and EUR 18 thousand in 2015). Mr. Yli-Kaatiala was member of the Board of Directors until 22nd of April 2017.

No essential changes have been made to the remunerations of the members of the Board of Directors after 31 December 2017.

CEO 

The Board of Directors decides on the salary, remuneration and other benefits of the CEO. The remuneration of the CEO consists of a monthly salary and bonuses.

OmaSp pays an annual bonus salary to the CEO if the business operations and results are at an adequate level in relation to the targets set by the Board of Directors. When deciding on the CEO’s bonus salary, available information regarding performance-related wage components from inter aliathe Hay-classification system are considered in order to make sure that the CEO’s remuneration also in this respect would be competitive in relation to the achieved results.

  • The salary, remuneration and other benefits paid to the company’s CEO in 2017 amounted to EUR 354.3 thousand (EUR 354.3 thousand in 2016 and EUR 307.9 thousand in 2015).
  • The total amount of the CEO’s pension schemes and other related costs were EUR 103.6 in 2017(EUR 103.8 thousand in 2016 and EUR 90.0 thousand in 2015), which, in addition to the CEO’s statutory pension insurance, included a voluntary pension insurance acquired by the company amounting to a total annual cost of EUR 40.0 thousand (EUR 40.0 thousand in 2016 and EUR 34.7 thousand in 2015).

In accordance with the terms of the voluntary pension insurance, a pension will be paid to the insured upon his or her application, when the insured person is between 60 years and 1 month and 70 years old. The amount of the pension is calculated based on the calculation bases and the accrued personal insurance savings as determined by the price list and terms of the insurance policy. In the event of the death or permanent incapacity of work of the insured, the beneficiary will, in accordance with the terms of the insurance policy, receive a lump-sum benefit, which is 100 per cent of the personal insurance sacings of the insured.
No material changes have been made to the remunerations of the CEO after 31stof December 2017.

The Management Team

The Board of Directors decides on the salary, remuneration and other benefits of the Management Team. The remuneration of the members of the Management Team consists of a monthly salary and bonuses.The Board of Directors decides on the bonuses for the members of the Management Team if the results of the members of the Management Team are on an adequate level in relation to the targets.

The employee benefits of the members of the Management Team (excluding the CEO) for the financial periods indicated:

  • The salary, remuneration and other benefits paid to the members of the Management Team in 2017 amounted to EUR 553 thousand (EUR 411 thousand in 2016 and EUR 363 thousand in 2015).
  • The pension expenses of the members of the Management Team in 2017 amounted to EUR 113 thousand (EUR 87 thousand in 2016 and EUR 79 thousand in 2015).

In total in 2017 EUR 666 thousand (EUR 498 thousand in 2016 and EUR 442 thousand in 2015). 
No material changes have been made to the remunerations of the members of the Management Team after 31stof December 2017.

Reward Schemes

OmaSp complies with the requirements concerning remuneration policies as provided in Chapter 8 of the Act on Credit Institutions. The Board of Directors of the bank has approved the general principles of the reward schemes applied in the company and supervises compliance with the reward scheme and evaluates its functionality.