The remuneration of the CEO consists of fixed annual pay, including a base salary and fringe benefits, and variable salary components, such as short-term and long-term incentives and a supplementary pension.
CEO Esa Harju’s fixed monthly salary is EUR 23,000 per month, including taxable fringe benefits (car benefit, phone benefit and health insurance). The CEO is also entitled to holiday pay.
Long-term incentive schemes (LTI)
Performance Matching Share Plan 2019-2021
The share-based incentive payment for the CEO during the year 2022 was based on long-term incentive scheme 2018 (LTI 2018) (plan period 2019-2021). The elements in the scheme included a matching share plan (ratio 2:1) and a performance matching plan. The performance criterion for the performance share plan was the Absolute Total Shareholder Return. The CEO’s payout based on a fixed matching element was 2,200 Teleste shares. There was no payout based on the performance matching element as the minimum performance threshold was not met. (CEO Esa Harju participated in this incentive scheme in his role as an SVP at Teleste at the time).
CEO Esa Harju is included in the following ongoing long-term incentive schemes:
Performance Matching Share Plan 2020-2022
The performance criterion forthe performance matching plan is the development of Absolute Total Shareholder Return and the performance ratio of the matching share plan is one additional share per two invested shares.The maximum earning potential is 23,400 Teleste shares. (CEO Esa Harju participated in this incentive scheme in his role as an SVP at Teleste at the time).
Performance Matching Share Plan 2021-2023
The performance criterion forthe performance matching plan is the development of Absolute Total Shareholder Return and the performance ratio of the matching share plan is one additional share per two invested shares. The maximum earning potential is 22,750 Teleste shares. (CEO Esa Harju participated in this incentive scheme in his role as an SVP at Teleste at the time).
Performance Matching Share Plan 2022-2024
The performance criterion of the performance matching plan is the development of Absolute Total Shareholder Return and the cumulative adjusted operating result. The performance ratio of the matching share plan is one additional share per two invested shares. The maximum earning potential is 70,125 Teleste shares.
Short-term incentive schemes (STI)
Year 2022
The CEO’s maximum annual earning opportunity corresponded to ten months’ base salary excluding bonuses. The EUR 27,255 bonus under the short-term incentive scheme for 2022 will be paid in spring 2023.
Other remuneration
| Pension | A defined contribution supplementary pension is included in the CEO’s contract. The payment level of the group pension is 25% of base pay, excluding bonuses, until the age of 65 or termination of employment. |
| Other benefits | The CEO has a car benefit, a mobile phone benefit and health insurance. |
| Shareholding recommendation | The CEO shall accumulate and subsequently maintain a shareholding in the company that corresponds to the CEO’s annual fixed salary. The CEO shall retain at least 50% of the net shares received under the company’s share-based incentive schemes until the CEO’s shareholding in the company has reached the aforementioned level. |
| Employment contract and severance pay | A six-month notice period applies upon termination of the contract by the CEO. In the event that the company terminates the contract, the CEO is entitled to twelve months’ salary and a separate severance pay corresponding to six months’ salary. |
Updated 2023