In Finland, the board remuneration is generally paid as a fixed fee paid either monthly or annually. Also, a meeting fee is used as a form of board remuneration in Finland. In addition, most companies pay a meeting and/or annual fee for board members participating in the board’s committee work.
Since the COVID-19 pandemic year, the decisions of annual general meetings on board remuneration have returned to more normal levels. At last spring’s annual general meetings, about 50% of the companies that pay a fixed remuneration raised their board fees, the average raise being about 9%.
It is good to justify the board remuneration proposal to the annual general meeting and to compare the level and the structure of the board remuneration to the relevant peer group of companies.
Evli Alexander Incentive Oy’s board remuneration database provides full data on the board and committee remuneration covering all the Finnish listed companies as well as Swedish and Danish Large Cap and Mid Cap companies. From this database, we provide companies with Tailored Board Remuneration Analysis where we analyze the board remuneration of the target company in relation to the selected peer group.
Board remuneration payment in shares has become more common. Two thirds of the Finnish Large Cap companies and approximately a half of all the companies listed on the main list pay part of their board remuneration in the company’s shares.
Board remuneration payment in shares, % of companies
Source: Evli Alexander Incentives Oy, Board Remuneration Report 2021
The payment of remuneration in shares involves a few things to consider, such as the practical arrangements for share purchases, book-entry accounts’ openings, especially for non-Finnish members as well as the MAR reports. Evli Alexander Incentives Oy takes care of these practical matters for a number of companies.
Additional information:
Leena Tyynilä, Director, Evli Alexander Incentives Oy, p.+358 50 560 5509, leena.tyynila@eai.fi
