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)
2021 Remuneration at a glance
The Board fees approved for 2021 were the same as in 2020 and the Board’s remuneration remained unchanged.
Total remuneration paid for the CEO in 2021 increased from 2020. We welcomed a new CEO in February 2021 and in conjunction with the recruitment, a temporary deviation from the Policy was made to ensure shareholder requirement. In 2020, the CEO took a voluntary pay cut. The 2020 short-term incentive scheme (STI) resulted in a pay-out, which was made in 2021.
A new share-based long-term incentive scheme (LTI) for the company’s management and selected key employees was decided by The Board in January 2021. The LTI is a Performance Share Plan (PSP). The performance criterion applied to PSP 2021 - 2023 is Economic Value Added (EVA).
We have introduced our ‘Set for 30’ sustainability strategy commitment. The goal is to become carbon neutral in our own operations by 2030, and to provide a product portfolio that will be ready for zero carbon fuels. Based on this we will include relevant sustainability targets in our LTI 2022-2024.
The 2019-2021 LTI did not result in pay-outs.
The STI targets 2021 were partly met, and pay-outs will be made in 2022 accordingly.
Remuneration report 2021 (pdf)