President and CEO
The President and CEO is appointed by the Board of Directors. The President and CEO holds the position of Managing Director under the Finnish Companies Act and is the Chair of the Fortum Leadership Team. The President and CEO is in charge of the day-to-day management of the Group, in accordance with the Companies Act and the instructions and orders issued by the Company’s Board of Directors. Under the Companies Act, the President and CEO is responsible for ensuring that the accounts of the Company comply with the applicable laws and that its financial affairs have been arranged in a reliable manner.
Remuneration and terms of the service agreement of the President and CEO
The terms of the managing director service agreement of President and CEO Markus Rauramo are in line with Fortum’s Remuneration policy for the governing bodies. The malus and clawback provisions for the President and CEO were not utilised in 2025.
Fixed compensation
The monthly fixed compensation of the President and CEO is EUR 100,000. The fixed compensation includes a company car and phone as fringe benefits. In addition, the President and CEO receives an electric vehicle subsidy of 25% of the taxable value of the full car benefit in accordance with Fortum’s Company Car Instructions.
Incentives
The total variable elements (STI and LTI) are capped at a maximum payout of 200% of the annual fixed compensation. The maximum STI is capped at 100% of the annual fixed compensation and the maximum LTI at 80–120% of the annual fixed compensation at grant.
Pension
The retirement age of the President and CEO is determined in accordance with the Finnish Employees’ Pension Act. In addition to the statutory pension, the President and CEO is entitled to participate in the supplementary group pension plan for the members of the Fortum Leadership Team. The annual defined contribution premium is 20% of the annual fixed compensation. If Markus Rauramo’s managing director service agreement is terminated before the retirement age, the President and CEO is entitled to retain the accrued funds in the pension arrangement up to that time.
Other benefits and programs
Other benefits currently include insurance for permanent total disability and critical illness, life insurance, and voluntary participation in the sickness fund and in the Employee Share Savings (ESS) programme.
Termination of managing director service agreement
The notice period for both parties is six (6) months. If the company terminates the agreement, the President and CEO is entitled to a fixed compensation for the notice period and a severance pay equal to six (6) months’ fixed compensation. No severance compensation is paid if the agreement is terminated by the President and CEO himself.