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)
2022 Remuneration at a glance
The Board fees approved for 2022 increased compared to 2021.
Total remuneration paid for the CEO includes base salary, benefits, supplementary pension contributions and shortterm incentive (STI). STI for 2021 resulted in a pay-out, which was made in 2022.
In our share-based long-term incentive scheme (LTI), we introduced sustainability targets for 2022-2024. These are linked to our strategic target to provide a product portfolio that will be ready for zero carbon fuels by 2030.
The 2019-2021 LTI did not result in pay-outs.
In the short-term incentive plan (STI) the CEO and Board of Management’s focus was on group financial and business financial targets with no individual targets for 2022.
STI 2022 did not result in pay-outs.
Remuneration report 2022 (pdf)