Remuneration

In Stockmann, the aim for the remuneration is to contribute to achieving sustainable short and long-term results, the fulfilment of the Stockmann’s strategy, values and long-term interests of the shareholders through motivated and result-oriented employees. The remuneration is based on market level alignment, performance, competence, experience and scope/complexity of the role.

Stockmann has rewarding programmes that cover every employee based on divisions, functions, job role and local market’s needs. With regards to variable performance-based rewarding, management and different functions may have their own specific schemes and the higher up in the organization the job role is, the higher is the variable pay proportion of the total earning opportunity. In addition to the base and variable pay, Stockmann offers a range of fringe benefits.

Remuneration of the CEO

The reward strategy of the CEO is to create shareholder value by competitive remuneration, pay for performance and incentives aligned with Stockmann’s strategy. The pay and employment principles and terms of Stockmann’s employees and the overall remuneration strategy applied by Stockmann shall be taken into account when setting the remuneration policy for the CEO.

The Board of Directors decides on the CEO’s salary and other benefits on the basis of proposals by the Compensation Committee. The remuneration of the CEO consists of a fixed salary which includes fringe benefits, as well as a performance-based incentives which may include short-term and long-term targets. The criteria for the remuneration of the CEO are reviewed and the results of such reviews are regularly reported to the Compensation Committee and the Board.

Remuneration of the Board

The remuneration of the Board members may consist of annual compensation and meeting fees paid for each meeting attended as approved by Stockmann’s Annual General Meeting of Shareholders. 

The annual compensation shall be in proportion to the time commitment required from the Board members and be competitive to attract and retain professionals with strong expertise, experience and knowledge relevant for their position as Board members of the company in conducting the Board’s responsibilities, including establishment of strategic and financial directions with relevant targets and monitoring their implementation. Thereby, this Remuneration Policy contributes to Stockmann’s long-term financial performance and success.

Stockmann’s highest decisionaking body is the Annual General Meeting (AGM). The AGM decides on the remuneration and other benefits to be paid to the members of the Board of Directors for their board and committee work annually. The proposal for the remuneration of the Board members is prepared by the Shareholders’ Nomination Board.

Read more about the remuneration policy in Stockmann (the file will open in the same window).

Corporate governance statement

Read more about corporate governance in the annual corporate governance report. Click on the link to open the 2023 corporate governance report.

Remuneration report

Read more about remuneration in the annual remuneration report. Click on the link to access the 2023 remuneration report.

Financial benefits pertaining to other Management Team members in 2023

For members of the Group’s Management Team other than the CEO, a total of EUR 808 573 was paid in fixed salaries in 2023 (2022: EUR 476 994). The fixed salary consists of EUR 780 882  in cash and EUR 27 691 in fringe benefits.

The Group Management Team members have a performance pay tied to the Group’s financial and other objectives related to the implementation of the strategy. The earning period for the short-term performance pay is a calendar year, and the performance pay may amount to no more than 30% of the fixed base salary. Due to the performance in 2022, performance pay of EUR 330 214 was paid in 2023 (2022: EUR 458 147). The vesting period for long-term incentive plans is three years. For the valid long-term incentive programs 2022–2024 and 2023–2025, no bonuses were paid in 2023. The retirement age of the Management Team members is 63 or 65, depending on the particular executive agreement in question. Two of the Management Team members had an earnings-related pension insurance taken by the company as of the end of 2023. The costs of the insurances in 2023 amounted to EUR 283 213 (2022: 303 670 .

The notice period for the Management Team members are mostly 6 months from both sides. If the company terminates the agreement, the Management Team members are in addition entitled to a severance payment equivalent to 3 or 6 months’ pay depending on their agreement in question.