Remuneration at Fortum is directed by the Group’s remuneration principles and Fortum’s general remuneration and benefits practices. When determining remuneration, the company’s financial performance and external market data, particularly the remuneration for similar positions among peer companies, are taken into consideration. The Board of Directors approves, at the proposal of the Nomination and Remuneration Committee, the remuneration principles at the Group level and decides on the bonus targets and the remuneration of senior management (President and CEO and other members of the Fortum Executive Management Team). Remuneration of the Board of Directors is decided by the
Annual General Meeting of Fortum. Remuneration proposal is prepared by Fortum's Shareholders' Nomination Board, which is appointed in the previous Annual General Meeting.
Fortum offers a competitive compensation package for senior executives and other members of the management teams. The aim is to attract, commit and retain key resources in all countries where Fortum operates. The package offers employees a competitive base salary. In addition to a salary, relevant benefits and short-term and long-term incentive schemes – with eventual payment based on attainment of challenging performance targets decided by the Board of Directors – are also offered.
The Finnish Corporate Governance Code 2010 requires that Fortum issues a remuneration statement regarding the salaries and other remuneration paid by the company. Furthermore, the Cabinet Committee on Economic Policy, representing the State owner, issued a statement in August 2012 on the remuneration of executive management and key
individuals in companies with State ownership. Fortum's remuneration principles comply both with the Finnish Corporate Governance Code 2010 and the statement issued by the Cabinet Committee.