Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | OTHERS
6.1 MANAGEMENT REMUNERATION
Antti Herlin has had a separate employment contract for his
role as Full-time Chairman of the Board at KONE until March
2, 2021. The employment-based compensation for Antti Herlin
consisted 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 his annual
salary. In 2021, Antti Herlin's base salary was EUR 74,600. In
addition, he received a bonus of EUR 290,462, which was
earned in 2020. He was also paid EUR 223,500 as
compensation for serving as Chairman of the Board. Antti
Herlin's holdings of shares are presented in the table on page
111. Statutory pension cost for the year 2021 was EUR
64,433.
A separate employment contract was entered into with
Vice Chairman of the Board Jussi Herlin for his role as the
Executive Vice Chairman of the Board as of March 2, 2021.
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 2021, Jussi Herlin's base salary was EUR
104,365. In addition, his accrued bonus for 2021 totaled EUR
26,166. This bonus will be paid in 2022. He was also paid
EUR 3,500 in meeting fees for Board and Committee work
during the time preceding March 2, 2021. Jussi Herlin's
holdings of shares are presented in the table on page 111.
The Executive Vice Chairman's retirement age and pension
are determined in accordance with Finland's Pensions Act.
Statutory pension cost for the year 2021 was EUR 16,855. 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 2021, Henrik Ehrnrooth's base salary was
EUR 750,000. In addition, his accrued bonus for 2021 totaled
to EUR 835,350. The performance criteria applied to this
annual short-term incentive is based on financial, strategic
and individual performance. The bonus will be paid in 2022.
Henrik Ehrnrooth is included in the share-based incentive plan
for the Group's senior management. In April 2021, on the
basis of the incentive plan for the year 2020, Henrik Ehrnrooth
received a reward of EUR 2,512,242, which consisted of
17,625 KONE class B shares together with a cash payment to
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
Salaries and other remunerations
Share-based payments
Jan 1-Dec 31, 2021
Jan 1-Dec 31, 2020
9.1
10.1
12.9
20.1
22.0
30.2
Total
Compensation recognized as an expense for members of the Board of Directors
and the President & CEO, (EUR, thousand) 2)
Herlin Antti, Chairman of the Board
Herlin Jussi, Vice Chairman of the Board ) )
Ehrnrooth Henrik, President & CEO '
Alahuhta Matti
Duinhoven Susan
Herlin liris
Kant Ravi
Kaskeala Juhani
Xin-Zhe Li Jennifer
Brunila Anne*
Pietikäinen Sirpa*
Total
* Board member until March 2,2021
Jan 1-Dec 31, 2021
298.1
Jan 1-Dec 31, 2020
535.0
107.9
112.4
750.0
750.0
113.0
50.5
111.0
48.0
111.0
48.5
114.0
56.5
113.0
50.5
110.0
1.5
49.0
1.0
48.5
1,830.5
1,748.9
In addition, for the financial year 2021 Jussi Herlin's accrued bonus is EUR 26,166 and Henrik Ehrnrooth's accrued bonus is EUR 835,350. These will be paid
during 2022. 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
February 25, 2021.
3) O Comparison period has been adjusted to align compensation disclosed for all members of management.
cover taxes and similar charges arising from the receipt of
shares. The maximum number of KONE class B shares
available for earning for the President and CEO for the year
2020 was 30,000 KONE shares. The reward was based on
sales growth and profitability as well as growth of KONE's
digital services. In January 2021, KONE's Board of Directors
decided on a new performance share plan. The performance
criteria applied to the 2021 performance year are based on a
combination of annual 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. The maximum number of
shares available for earning for the President and CEO for the
2021 share-based 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 incentive
plan for the year 2021 will be confirmed in January 2024,
depending on the performance during the years 2021, 2022
and 2023. Henrik Ehrnrooth's holdings of shares are
78
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