Remuneration and terms of employment of President and CEO Pekka Lundmark
Salary and fringe benefits
As of 1 April 2018, EUR 84,000/month, including free car allowance and phone allowance as fringe benefits. Until 31 March 2018, the monthly salary was EUR 80,000/month.
Short-term incentive system (bonus)
The bonus can be earned annually based on the criteria approved by the Board of Directors. The maximum level is 40% of the annual salary including fringe benefits. Annual salary = 12 times the salary paid in December of the year in question.
Long-term incentive system (share bonus)*
According to Fortum management's ongoing share bonus systems. The maximum value of shares (before taxation) cannot exceed the annual salary of the President and CEO.
Retirement age is 63. The President and CEO has a supplementary defined contribution pension plan. The annual contribution is 25% of the annual salary, which consists of the base salary and fringe benefits. If the President and CEO's contract is terminated before retirement age, he is entitled to retain the funds that have accrued in the pension fund.
Termination of Contract
The notice period for both parties is six months. If the company terminates the contract, the President and CEO is entitled to the salary of the notice period and severance pay equal to 12 months’ salary.
* As of 7 September 2015 Pekka Lundmark participates in 2014-2019 and 2015-2020 share bonus schemes for the remaining earnings periods.