Remuneration of the Leadership Team
Remuneration of the Leadership Team members consists of
- base salary and benefits
- short-term incentives: an annual bonus
- long-term incentives, such as share-based programmes and pension plans.
The purpose is to reward for company performance and individual performance. These two form overall performance evaluation (OPE). Tieto’s bonus system is based on clear measurable targets set for the company’s financial performance and strategy implementation. Weighting of the reward factors for the President and CEO is described in a separate table.
The reward targets are set annually by the Board of Directors. The amount of bonuses is decided by the Board of Directors after the financial statements have been prepared and the bonuses are paid by the end of May.
The terms and conditions of share-based long-term incentive plans are approved by the Board of Directors. Tieto's long-term incentive plan for 2015–2017, 2016-2018 and 2017-2019 covers around 150 key employees, including Tieto’s Leadership Team. Long-term incentive plan 2018-2020 covers around 250 key employees, including Tieto's Leadership Team.
Tieto operates a number of different pension plans in accordance with national requirements and practices. In addition to statutory pension plans, most Leadership Team members are provided with additional pension schemes. Tieto’s pension plans are described in more detail on a separate page.