For information on remuneration of the CEO, see CEO remuneration
| Remuneration |
EUR |
| Annual salary |
2 640 000 |
| Local housing (actual costs) |
53 000 |
| Other benefits (taxable sums representing fair value) |
102 000 |
| Bonus (variable salary)* |
218 000 |
| Share programmes |
736 000 |
| |
3 749 000 |
| Pension costs |
|
| Mandatory company plans |
102 000 |
| Stora Enso voluntary plans |
1 193 000 |
| |
1 295 000 |
| Total compensation |
5 044 000 |
* The Short Term Incentive result for performance year in 2009 (originally payable 2010) was converted to Restricted Share Awards and deferred to March 2011. Settled in Cash for individuals leaving Group Executive Team during the year.
Short Term Incentive (STI) programmes for management
GET members have STI programmes with up to a maximum of 50% of their annual fixed salary, payable the year after the performance period. The STI for 2010 was based 70% on financial measures and 30% on Individual Key Targets. The 2010 deferred payout, relating to performance year 2009, to be delivered in shares (restricted shares) in March 2011 was EUR 960 769 (EUR 396 000).
Option programmes for management
No options have been awarded since year 2007. During the year 2010, 82 500 options relating to the 2003 Programme lapsed and no others were exercised. In 2009 no options were exercised.
Long Term Incentive (LTI) programmes for management
GET members participate in a number of share-based LTI programmes. In 2007/2008 a Senior Executive section of the Performance Share programme was introduced. The shares granted under this programme will vest over a four-year period (2009-2012). Vesting date is 1 March each year. Since 2009 new LTI programmes with a three year vesting period have been launched each year. All programmes can vest up to an absolute maximum vesting level of 150% of the number of shares awarded provided that the result of the performance criteria exceeds the target. The performance criteria for 2010 was based solely on financial measures.
Under the Performance Share 2010 plan GET members received awards of 280 524 shares assuming annually defined performance conditions will be met.
Under the accounting rules for share-based payments, the non-cash charge for the executive options and restricted share awards is calculated at the vesting value of shares and options granted in the year plus any fair value movement in the year on previous awards. The accounting charges will not agree with the actual cash costs on a year-to-year basis though the totals will match when they have all been vested, cashed, expired or lapsed. The figures in the table above refer to individuals who were executives at either the time of grant or settlement.
During the year the number of shares settled on executives from previous awards derived from Restricted Share Programmes and Performance Share Programmes amounted to 159 263 having a cash value at the 1 March 2010 settlement date of EUR 735 795 based on the share price of EUR 4.62 at that date.
GET members were not eligible for new Restricted Share Awards in 2010 other than the 2010 deferred STI payout, relating to performance year 2009.
For GET members the aggregate number of outstanding shares derived from Restricted Share Programmes of previous years, including the 2010 deferred STI payout, relating to performance year 2009, to be settled in 2011 is 189 891. The corresponding number to be settled in 2012 is 0.
The Company has no formal policy requirements for the executives to retain shares received as remuneration.
