Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | OTHERS
6.1 MANAGEMENT REMUNERATION
The Vice Chair of the Board, Jussi Herlin has a separate
employment contract for his role as Executive Vice Chair of
the Board at KONE. The employment-based compensation for
Jussi Herlin consists of a base salary and an annual bonus
decided by the Board on the basis of the Group's financial
result. The annual bonus may not exceed 100 percent of the
recipient's annual base salary. In 2022, Jussi Herlin's base
salary was EUR 125,600. In addition, he received a bonus of
EUR 26,166, which was earned in 2021. There will be no
bonus payout in 2023 as the performance criteria for 2022,
tied to the Group's financial performance, were not met. Jussi
Herlin's holdings of shares are presented in the table on page
121. The Executive Vice Chair's retirement age and pension
are determined in accordance with Finland's Pensions Act.
Statutory pension cost for the year 2022 was EUR 26,954. No
separate agreement regarding early retirement has been
made.
The compensation for the President and CEO Henrik
Ehrnrooth consists of a base salary and an annual bonus
determined by the Board on the basis of the Corporation's key
targets. The annual bonus may not exceed 150 percent of his
annual salary. In 2022, Henrik Ehrnrooth's base salary was
EUR 750,000. He also received a bonus of EUR 835,350,
which was earned in 2021. His accrued bonus for 2022
totaled EUR 465,675. The performance criteria applied to this
annual short-term incentive is based on financial, strategic
and individual performance. The bonus will be paid in 2023.
In addition, Henrik Ehrnrooth is included in the long-term
share-based incentive plan for the Group's senior
management. The maximum number of shares available for
earning for the President and CEO for the 2021 long-term
incentive plan is 53,541 KONE class B shares (gross before
deduction for applicable taxes). The final outcome and any
potential share awards under the long-term incentive plan for
the year 2021 will be confirmed in January 2024, depending
on the performance during the years 2021, 2022 and 2023.
The maximum number of shares available for earning for
the President and CEO for the 2022 long-term incentive plan
is 58,243 KONE class B shares (gross before deduction for
applicable taxes). The final outcome and any potential share
awards under the long-term incentive plan for the year 2022
will be confirmed in January 2025, depending on the
performance during the years 2022, 2023 and 2024.
The performance criteria applied to the 2021 and 2022
performance years are based on a combination of annual
The key management of KONE consists of the Board of Directors of KONE Corporation and the Executive Board.
Compensation paid to the key management, MEUR 1
Salaries and other remunerations
Share-based payments
Jan 1-Dec 31, 2022
Jan 1-Dec 31, 2021
10.1
9.1
0.0
10.1
12.9
22.0
Total
Herlin Antti, Chairman of the Board
Herlin Jussi, Vice Chair of the Board
Ehrnrooth Henrik, President & CEO '
Alahuhta Matti
Duinhoven Susan
Herlin liris
Compensation paid to the Board of Directors, the President and CEO (EUR,
thousand) 3)
Jan 1-Dec 31, 2022
Jan 1-Dec 31, 2021
240.0
298.1
125.6
107.9
750.0
750.0
130.0
113.0
120.0
111.0
110.0
111.0
130.0
114.0
113.0
110.0
120.0
110.0
1.5
1.0
1,830.5
Kant Ravi
Kaskeala Juhani*
Mikkilineni Krishna
Xin-Zhe Li Jennifer
Brunila Anne**
Pietikäinen Sirpa**
Total
* Board member until March 1,2022
** Board member until March 2,2021
1,835.6
In addition, for the financial year 2022 Henrik Ehrnrooth's accrued bonus was EUR 465,675 (835,350), which is payable in 2023 (2022). In 2021, Jussi Herlin's
accrued bonus was EUR 26,166 and Antti Herlin was paid EUR 74,600 in base salary and a bonus totaling EUR 290,462 which was earned in 2020. In April 2021,
the share-based payments for the financial year 2020 received by Henrik Ehrnrooth was EUR 2,512,242.
2) Includes also the annual compensation of the Board which was performed by using shares of KONE Corporation decided by the Annual General Meeting held on
March 1, 2022.
sales growth and adjusted EBIT margin, as well as
improvements in sustainability. The sustainability performance
condition is a combination of reductions in carbon footprint, as
well as diversity and inclusion and safety related targets.
Henrik Ehrnrooth's holdings of shares are presented in the
table on page 121. Henrik Ehrnrooth's retirement age and
pension are determined in accordance with Finland's
Pensions Act. Statutory pension cost for the year 2022 was
EUR 281,558. No separate agreement regarding early
retirement has been made. Should his employment contract
be terminated before retirement, he has the right to the
equivalent of 18 months' salary, which includes the salary for
a six-month term of notice.
The compensation for the members of the Executive
Board comprises a base salary and an annual bonus, based
on financial targets and strategy execution, as well as
individual performance. The bonus amount is determined by
88
KONE ANNUAL REVIEW 2022View entire presentation