Proposals of the Shareholders’ Nomination Board to Wärtsilä’s Annual General Meeting 2021
The Shareholders' Nomination Board, established by Wärtsilä’s Annual General Meeting on 5 March 2020, presents the following proposals to the Annual General Meeting to be held on 4 March 2021. The proposals will be included in the notice to the Annual General Meeting to be published at a later date.
Proposal on the composition of the Board of Directors
The Shareholders' Nomination Board proposes that the number of Board members shall be eight.
The Nomination Board proposes that Maarit Aarni-Sirviö, Karen Bomba, Karin Falk, Johan Forssell, Tom Johnstone, Risto Murto and Mats Rahmström shall be re-elected as members of the Board. Markus Rauramo has informed that he is not available for the re-election to the Board of Directors. Consequently, the Nomination Board proposes that Tiina Tuomela shall be elected as a new member of the Board. A brief presentation of Tiina Tuomela can be found on Wärtsilä’s website at www.wartsila.com/investors.
All the proposed Board members are determined to be independent of the company. With the exception of Tom Johnstone and Johan Forssell, all proposed members are also determined to be independent of the company’s significant shareholders. Tom Johnstone is determined to be dependent of significant shareholders, due to his position on the board of Investor AB. Johan Forssell is determined to be dependent of significant shareholders, due to his position as the President and CEO of Investor AB.
The proposed Board members have all given their consent to being elected. The members of the Board of Directors will elect from amongst themselves the Chairman and Deputy Chairman of the Board. The persons to be elected to these Board positions will be communicated at a later date.
Proposal on the remuneration of the Board of Directors
The Shareholders’ Nomination Board proposes that the annual remuneration to the Board of Directors, as well as the fixed fees for the committee work, remain unchanged as follows:
- The annual remuneration payable to the members of the Board shall be EUR 140,000 for the Chairman, EUR 105,000 for the Deputy Chairman and EUR 70,000 for the ordinary members. In addition, each member shall be paid EUR 750 per Board meeting attended. The chairman’s meeting fee shall be double this amount.
- The Chairman of the Audit Committee shall receive a fixed fee of EUR 20,000 and each member of the Committee a fixed fee of EUR 10,000 for the term.
- The Chairman of the People Committee shall receive a fixed fee of EUR 10,000 and each member of the Committee a fixed fee of EUR 5,000 for the term.
Approximately 40% of the annual Board remuneration is proposed to be paid in Wärtsilä shares, and the rest in cash. The Company will compensate the transaction costs and costs related to the applicable asset transfer tax arising from the share purchases. The tax deduction for the entire annual fee will be made from the cash amount. The meeting attendance fees and fixed fees for the Committee work will be paid in cash. Possible travel expenses will be reimbursed according to the travel policy of the Company.
Composition of the Shareholders’ Nomination Board
In accordance with the decision of the Wärtsilä’s Annual General Meeting, the Nomination Board consists of five members. Four representatives are nominated by the company’s four largest shareholders, with the fifth member being the Chairman of Wärtsilä’s Board of Directors. The four largest shareholders are determined on the basis of the shareholders’ register maintained by Euroclear Finland Ltd. as of 1 June preceding the Annual General Meeting of shareholders.
In 2020, the following members were appointed to the Shareholder’s Nomination Board: Petra Hedengran representing Invaw Invest AB (the Chair), Reima Rytsölä representing Varma Mutual Pension Insurance Company, Mikko Mursula representing Ilmarinen Mutual Pension Insurance Company, Satu Huber representing Elo Mutual Pension Insurance Company, and Chairman of the Board of Directors of Wärtsilä Tom Johnstone. Tom Johnstone did not take part in deciding on the Nomination Board's proposals related to the remuneration to be paid to the Board of Directors.
For further information, please contact:
Executive Vice President, Corporate Relations and Legal Affairs
Tel: +358 10 709 5609
For investor information, please contact:
Vice President, Investor Relations
Tel: +358 10 709 5637
Wärtsilä in brief
Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation, total efficiency and data analytics, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2019, Wärtsilä’s net sales totalled EUR 5.2 billion with approximately 19,000 employees. The company has operations in over 200 locations in more than 80 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.