Remuneration policy at a glance
According to the Remuneration Policy for Governing Bodies of Wärtsilä (the “Remuneration Policy” or “Policy”), remuneration at Wärtsilä shall follow ’Pay
for Performance’ principles of being responsive, transparent, competitive and aligning relevant interests. These principles are used for structuring the reward approach throughout the organisation, and are designed to align employee rewards
with the interests of the company and its shareholders.
Remuneration for the Board of Directors (the “Board”) consists of annual fees for Board membership, attendance fees, and committee fees. Fees vary based on position, workload and responsibility. Annual fees are paid in shares and cash, attendance and committee fees in cash. The Annual General Meeting (“AGM”) decides on the fees for each term of office.
Remuneration of the Chief Executive Officer (the “CEO”) consists of a base salary, pension and benefits, as well as short- and long-term incentives. The objective is to have a good balance of rewarding elements, and to guarantee a market competitive level of fixed remuneration. This is supplemented with short- and long-term incentive schemes aimed at driving company performance and providing an appropriate reward.
The Board may deviate from the Policy in extraordinary circumstances.
Remuneration policy (pdf)
2023 Remuneration at a glance
The Board fees approved for 2023 remained the same as the previous year.
STI for 2022 did not result in a pay-out.
In the short-term incentive plan (STI) the CEO and Board of Management’s focus was on group and business financial targets with no individual targets set for 2023.
STI 2023 resulted in a pay-out.
In our Performance Share Plan (PSP), in addition to EVA, we introduced sustainability targets for 2022-2024, for the first time, and have employed them in all subsequent plans. These are linked to our strategic target to provide a product portfolio that will be ready for zero carbon fuels by 2030.
The 2020-2022 LTI did not result in a pay-out.
The 2021-2023 PSP resulted in a pay-out that will be transferred in the spring of 2024.
Remuneration report 2023 (pdf)