Members of the Board of Directors

A decision was made at the Annual General Meeting on 24 April 2019 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 severance payment is not included in the President & CEO’s terms of employment.

The Board 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 2019.

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 93,552 new series B shares in the company were subscribed under stock options in 2019. The share subscription price under the stock options in 2019 was EUR 2.2766 per share. The share subscription period

with stock options I 2013 B began on 1 June 2015 and ended 31 May 2019.

No new stock option programmes are in effect for 2020. 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 2019

During the financial period that ended on 31 December 2019, the remuneration paid to members of the parent company’s Board of Directors totalled EUR 50,000 (EUR 36,000 in 2018). Osmo Suovaniemi was paid EUR 209,000 (EUR 213,000 in 2018) for his services as a member of the scientific advisory board. The remuneration paid to the President & CEO, Semi Korpela, amounted to EUR 204,000 (EUR 202,000 in 2018). Salaries paid to other Management Team members totalled EUR 393 000 (EUR 524,000 in 2018).