Remuneration of the Group Management Team
Based on the President and CEO's proposal, the Board of Directors decides on the remuneration of the Group Management Team. The remuneration of the Group Management Team consists of a fixed base salary, fringe benefits, a short-term incentive plan based on company's performance, and a share-based long-term incentive plan.
Summary of the remuneration of the Group Management Team in 2024
| Base salary and fringe benefits | Performance bonus for 2024 | Share rewards | Supplementary pension benefits | Altogether |
Group Management Team excl. President and CEO | EUR 2,430,000 | EUR 152,000 | 1,182 shares* | EUR 230,000 | EUR 2,812,000 |
* The net share reward was paid from the Restricted Share Plan 2021–2023.
Short-term incentive plan (performance bonus)
The purpose of the performance bonus is to reward the Group's Management Team annually for achieving the company's goals. The amount of the performance bonus is a maximum of 70% of the annual base salary of each member of the Group Management Team and it will be paid in the following financial year.
In 2024, the earning criteria were the Nokian Tyres segments operating profit and net sales, as well as the financial and/or strategic targets set for the members of the Management Team in their own business area or function.
Other elements of remuneration
A supplementary pension plan where the pension contribution is about 10% of the base salary, depending on the position and the country.
The notice period for a member of the Group’s Management Team is 6 months for the company and 3–6 months for a member of the Management Team. If the company terminates the agreement, an additional 6-month severance pay will be paid.