Personnel and Compensation committees rules of procedure
The Personnel and Compensation Committee assists the Board of Directors in matters concerning the remuneration of the company’s CEO and other senior management, the evaluation of performance, appointments and succession planning. The Committee also assists the Board in the preparation and assessment of the Group’s remuneration principles and personnel principles. On the basis of the authorisation granted by the Board of Directors, the Committee assesses and confirms the achievement of the short-term incentive pay targets and approves the payment of incentives to the CEO and other senior management.
Main tasks of the Personnel and Compensation Committee:
The Committee prepares the following matters for the Board of Directors:
- key principles and practices associated with the company's remuneration
- remuneration of Stockmann’s CEO and other terms applicable to the service contract, and the remuneration and other terms of the employment relationships of the management
- incentive and commitment schemes for the CEO and the management
- evaluation of the performance of the CEO and the management
- matters pertaining to the appointment of the CEO and the management
- succession planning and management development for the CEO and the management
- presentation of the governing bodies’ remuneration policy to the General Meeting
- annual remuneration reporting in accordance with the recommendations of the Finnish Corporate Governance Code for listed companies valid at any given time.
The activities of the Personnel and Compensation Committee are described in the company’s Corporate Governance Statement that is issued annually.
Members of the Personnel and Compensation Committee
The Personnel and Compensation Committee consists of at least three members, who shall elect a Chairman for the Committee. In addition to the members of the Committee, the Group’s CEO pariticipates in the meeting.
Adoption of the rules of procedure
These rules of procedure were approved at the Board of Directors meeting held on 11 February 2021. The rules of procedure shall be reviewed annually at the organisational meeting of the Board of Directors held after the Annual General Meeting.