Remuneration report 2021

NOHO PARTNERS PLC

REMUNERATION REPORT 2021

Introduction

This Remuneration Report is also available at www.noho.fi. NoHo Partners Plc’s Remuneration Policy sets out the principles and decision-making processes for the remuneration of the Board of Directors and the CEO and the key terms of the employment contract. The company’s Remuneration Policy covers the Board of Directors and CEO of the Company.

Remuneration pursuant to the Remuneration Policy is based on the following components:

  • basic salary and employee benefits where the company complies with the local market practices, laws and regulations
  • a short-term incentive scheme, the purpose of which is to guide the performance and achievement of objectives of individuals and the organisation
  • a long-term reward scheme designed to engage key personnel. Long-term incentives aim to engage the management and align their interests with those of the company’s shareholders.

Development of remuneration in relation to the economic development of the company

The following table shows the evolution of the remuneration of the Board of Directors and the CEO compared to the development of the average remuneration of the Group’s employees and the economic development of the Group for the previous five financial periods. According to the Company’s Remuneration Policy, part of the CEO’s remuneration consists of short- and long-term incentives that are related to the performance of the business.

Development of remuneration (EUR 1,000)

  2017 2018 2019 2020 2021
Annual remuneration of the Board of Directors 85.0 87.7 93.5 134.0 150.0
Annual remuneration of the CEO 199.4 211.7 294.1 474.7 310.8
Average wage developments per person 31.8 33.4 34.2 33.8 29.7

The average salary development of an employee of the company is based on staff expenses, excluding associated personnel costs, divided by the average number of employees during the year. The CEO’s annual fee for 2021 includes a share-based incentive scheme payment of EUR 0 for the earning period that ended on 31 December 2020.

Economic development of the company (EUR 1,000)

2017 2018 2019 2020 2021
Group turnover 185,856 209,627 272,820 156,771 186,069
Group EBIT 10,767 15,658 30,551 -23,880 -898

Fees for the Board of Directors

The Annual General Meeting decides on the remuneration of the Board members for one term of office at a time on the basis of a proposal submitted by the largest shareholders. The resolution on the remuneration of Board members must be based on the remuneration policy that has been submitted to the Annual General Meeting and is currently valid.

The 2021 Annual General Meeting decided on 21 April 2021 to pay a fee of EUR 40,000 per year to the Chairman of the Board, EUR 30,000 per year to the Vice-Chairman of the Board and EUR 20,000 per year to the members of the Board. It was also decided that the travel expenses of the members of the Board are reimbursed in accordance with the company’s travel rules.

Remuneration paid to the members of the Board of Directors from 1 January 2021 to 31 December 2021 (EUR 1,000)

  Annual remuneration Other financial benefits Total
Timo Laine (Chairman of the Board of Directors) 40.0 105.8* 145.8
Petri Olkinuora (Vice-Chairman of the Board of Directors) 30.0      0.0 30.0
Mika Niemi (member of the Board of Directors) 20.0      0.0 20.0
Mia Ahlström (member of the Board of Directors) 20.0      0.0 20.0
Saku Tuominen (member of the Board of Directors) 20.0      0.0 20.0
Tomi Terho (member of the Board of Directors) 20.0      0.0 20.0
Total 150.0 105.8 255.8

*) Consultant fee.

The members of the Board of Directors are not involved in the company’s share-based remuneration schemes, and the Board of Directors’ fees are not paid in shares.

Remuneration of the CEO

The Board of Directors decides on the remuneration and key terms of employment of the CEO and Deputy CEO.

The short-term remuneration of the CEO and Deputy CEO comprises salary, employee benefits and performance-based remuneration determined on the basis of the Company’s result and the achievement of other short-term objectives. The long-term remuneration of the CEO and Deputy CEO may also comprise share-based incentive schemes.

Aku Vikström acts as the CEO and Jarno Suominen as the Deputy CEO.

Fixed salary component

The fixed part of the remuneration of the CEO and the Deputy CEO consists of a monthly salary and benefits in kind. The CEO’s fixed annual salary in 2021, including benefits in kind, was EUR 280,800. The Deputy CEO’s fixed annual salary in 2021, including benefits in kind, was EUR 192,500.

Short-term performance bonus

In 2021, the CEO was paid a performance reward of EUR 30,000 for 2020. The ratio of fixed and variable remuneration components of the CEO’s salary was 90/10 in the financial period.

In 2021, the Deputy CEO was paid a performance reward of EUR 30,000 for 2020. The ratio of the Deputy CEO’s fixed and variable remuneration components of the CEO’s salary was 87/13 in the financial period.

For 2021, a short-term performance bonus of EUR 50,000 is paid to the CEO and EUR 40,000 to the Deputy CEO. Performance fees are due after the end of the financial period.

Long-term remuneration

The CEO and Deputy CEO are covered by the company’s share-based incentive scheme. No share-based incentives were paid in 2021.