Main elements of the Fiskars Group Leadership Team's remuneration
The Board of Directors appoints the Managing Director (President and CEO) and confirms the terms of his/her employment and other compensation. The Board is also responsible for appointing the members of the Fiskars Group Leadership Team, approving their terms of employment and other compensation, and deciding on the principles for the compensation programs applied to the Fiskars Group Leadership Team. The Compensation Committee is responsible for preparing matters related to these topics.
In addition to base salary, Fiskars offers its executives variable pay programs to further encourage high performance. The company has established a Short-term incentive plan and a share-based Long-term Incentive Plan. In addition, members of the Fiskars Group Leadership Team based in Finland have a voluntary, defined contribution pension insurance.
Incentive Plan design
Both Fiskars Group’ Short-term incentive plan and its Performance Share Plan are designed to reward for achievements against pre-established goals. Incentive Plan participants are assigned an overall target payout opportunity that will dictate the incentive payout. This is not a guarantee that a payout will be made.
Short-term incentive plan
Short-term incentive plan payments will be made on the basis of performance against plan metrics. The plan metrics may consist of a mix of financial metrics, operational metrics and other strategic personal goals. The potential payout ranges from zero to a maximum percentage of each participant’s annual salary. In 2023 the target payout levels vary between 40-75% for the Fiskars Group Leadership Team members. The maximum level for the President and CEO and the other members of the Fiskars Group Leadership Team is at maximum either 1.2 or 1.5 times the target level. In 2023 the short-term incentive plan includes only financial goals of the company and the KPIs will be confirmed separately for the first and second half of the year to ensure they are as relevant as possible.
Long-term Incentive plans
Fiskars Board of Directors has approved share-based long-term incentive plans as part of Fiskars Group’s remuneration program for its key employees. The aim of the plans is to support the implementation of the company’s strategy and to align the objectives of key employees with the shareholders to increase the value of the company. The Performance Share Plan includes performance periods of three years. The amount of the reward paid based on the Performance Share Plan depends on achieving the pre-established targets. No reward will be paid if targets are not met or if the participant’s employment or service ends before reward payment.
Starting from 2018 all new long-term incentive plans have been share-based plans.