REMUNERATION IN 2017

Members of the Board of Directors

A decision was made at the Annual General Meeting on 25 April 2018 to pay a fee of EUR 1,500 per meeting to the chairman and the other members of the Board of Directors.

President & CEO and other company management

The Board approves the President & CEO’s remuneration and terms of employment. The notice period of the President & CEO and the members of the Management Team and the remuneration for these parties during the notice period is determined in accordance with the Employment Contracts Act.

The President & CEO approves the remuneration and terms of employment of members of the Management Team. Biohit’s Board of Directors approves the principles of the incentive schemes for Management Team members and the President & CEO. Bonuses are determined on the basis of the net sales and earnings trends in each person’s area of responsibility. The maximum bonus that can be received depends on each person’s monthly salary and can total no more than 40% of annual salary. No bonus was paid to the President & CEO and Management Team members in 2018.

The President & CEO approves the salaries and profit-based incentives of subsidiaries’ Managing Directors in accordance with the instructions provided by Biohit’s Board of Directors. Profit-based incentives are dependent on sales and profitability trends for each unit’s product segments.

In 2013, Biohit introduced an incentive system offering stock options to company managers and employees. A total of 65,198 new series B shares in the company were subscribed under stock options in 2018. The share subscription price under the stock options in question was EUR 2.2766 per share. On 31 December 2018, there were 113,552 stock options in circulation. The deadline for exercising stock options under the options programme is 31 May 2019. According to the terms and conditions of the stock option programme, stock options can be executed or sold on when they have been earned.

No new stock option programmes are in effect for 2019. CEO and the management team members are covered by an incentive scheme, which is based on the reaching of annually set targets. The targets are mainly linked to the net sales and results of the whole company. The target levels of management’s bonuses are 20% of the total compensation. The Board of Directors will set and approve the financial targets for the CEO and the Management Team members

Pension plans

No other pension arrangements, beyond those mandated by law, have been made with the Managing Directors of Group companies.

Remuneration and other benefits 2017

During the financial period that ended on 31 December 2018, the remuneration paid to members of the parent company’s Board of Directors totalled EUR 36,000 (EUR 33,100 in 2017). Osmo Suovaniemi was paid EUR 213,000 (EUR 201,000 in 2017) for his services as a member of the scientific advisory board.

The remuneration paid to the President & CEO, Semi Korpela, amounted to EUR 202,000 (EUR 202,000 in 2017). Salaries paid to other Management Team members totalled EUR 524 000 (EUR 553,000 in 2017).