Reward Agency’s 9th annual report of publicly listed companies executive and board remuneration has now been published. Once again we have analysed the Finnish remuneration policies and reports published by Finnish listed companies in the spring of 2023. The research data consists of 182 companies in the stock exchange’s main list and the First-North list of companies.
Executive remuneration emphasized sustainability in 2022. Compared to the previous years, the utilization of sustainability objectives increased significantly both in Short-Term and Long-Term Incentive Plans. Environment and Sustainable Development focused objectives are increasingly common alongside traditional safety, customer and employee satisfaction measures.
Median CEO total remuneration 382 000 eur – base salary increase 3%
When considering the paid (and reported) base salaries, benefits, annual bonuses and Long-Term Incentives in 2022, then slightly over half of the CEOs earned between 100 000 – 500 000 Euros. 20% earned a total salary between 500 000 – 1 000 000 euros, 13% earned between 1-2 million Euros and 8% (15 persons) of the CEOs earned over 2 million Euros. At the median level, the total remuneration of a publicly listed company’s CEO was 382 000 euros per year. In medium-sized and large companies, half of the total remuneration comes from incentives.
CEO Fixed Base Salary median increased 3% compared to the previous year. In the companies, in which the reported salaries are comparable with each other in 2021-2022, the CEO median Fixed Salary increased 4% compared to the previous year. Due to inflation salary increases this year will be even a little higher than that.
Transparent remuneration benefits us all
One key cornerstone of responsible remuneration in listed companies is transparent reporting. In the spring 2023 Remuneration Reports, the quality was deemed excellent in three listed companies: Fiskars, Fortum and Nokian Tyres. This spring the reporting improved again with regards to CEO remuneration and in several companies also the incentive plan objectives were reported more clearly than before. On the other hand, we observed a decrease in the quality of Management Team salary reporting in some companies, compared to the previous year. There is large variation between companies however, and too many companies are way under the bar in this.
Our remuneration survey aims to provide updated information for company boards and executives to support decision making. We also want to encourage Finnish listed companies for increasingly more performance-based remuneration and more open reporting. Sustainable and transparent remuneration benefits us all.
The full survey report can be ordered here.