Remuneration of the CEO and other members of the Group Management Team
The company’s goal is to provide a competitive and incentivising total remuneration scheme for the CEO and members of the Group Management Team. In determining remuneration, a comparison with selected comparable companies is taken into account.
Digia Plc’s Compensation Committee draws up a proposal for the CEO’s salary, emoluments and other benefits. The Compensation Committee works with the CEO to draw up a proposal for the salaries, emoluments and other benefits payable to other members of the Group Management Team. External experts and market analyses are employed whenever necessary. The Board of Directors decides on the salary, emoluments and other benefits payable to the CEO. The Remuneration Committee decides, under the authorisation of the Board of Directors, on the salaries, emoluments and other benefits payable to other members of the Group Management Team on the basis of the CEO’s proposal.
Digia has an agreement with Evli Awards Management Ltd for the coordination of the company's share-based incentive schemes, their associated share management, and the payment of incentives to individuals in accordance with the terms and conditions of the schemes.
Total remuneration for the CEO and members of the Group Management Team consists of fixed and variable components. Fixed remuneration components are all financial benefits whose monetary value is known to the parties in advance, such as annual salary and fringe benefits. Variable remuneration components include all bonuses whose monetary value is dependent on the individual’s performance or an externally determined factor, such as the performance of the company’s financial or non-financial indicators. The overall remuneration of the CEO and members of the Group Management Team consists of the following parts:
Form of remuneration |
Remuneration of the CEO and other members of the Group Management Team |
Fixed total monthly salary (including fringe benefits)
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The CEO and other members of the Group Management Team are paid a fixed monthly salary. Any fringe benefits are deducted from the total salary.
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Short-term incentive (STI)
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The CEO and other members of the Group Management Team are included in the incentive scheme confirmed by the company and are entitled to a performance bonus based on the achievement of annually specified targets.
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Long-term incentive scheme (LTI, share-based incentive scheme)
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The CEO and other members of the Group Management Team are included in the share-based incentive scheme confirmed by the company and are entitled to a potential share-based incentive payable under the scheme.
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Fringe benefits
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The CEO and other members of the Group Management Team are entitled to fringe benefits granted by the company universally to its employees. Executives are entitled to a full company car benefit. The value of benefits is deducted from total salary in accordance with standard practice on the taxation of benefits.
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Other benefits
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The CEO and other members of the Group Management Team are entitled to universal employee benefits offered by the company to its personnel.
The CEO and other members of the Group Management Team have life insurance and insurance against permanent incapacity to work.
The retirement age of the CEO and other members of the Group Management Team is stipulated by law, and none of them are covered by any separate additional pension agreements with the company.
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Compensation at the end of the employment relationship
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If the company terminates the CEO’s employment contract, the CEO shall be paid a total sum in the amount of the salary for twelve (12) months. The CEO may resign with six (6) months’ notice.
If the company terminates the CFO’s employment contract, the CFO shall be paid a total sum in the amount of the salary for three (3) months. The CFO may resign with three (3) months’ notice.
The term of notice for other members of the Group Management Team is three (3) months.
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The indicators for variable remuneration components are tied to targets that support the company’s business strategy and promote long-term financial success and competitiveness. Variable components of short- and long-term remuneration of the CEO and other members of the Group Management Team are tied to predefined performance criteria with fixed minimum, target and maximum values.