Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | OTHERS
presented in the table on page 111. Henrik Ehrnrooth's
retirement age and pension are determined in accordance
with Finland's Pensions Act. Statutory pension cost for the
year 2021 was EUR 200,825. 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 the Group's annual result and the achievement of
individual targets, which can relate to, for example, strategy
execution, safety or quality. The bonus amount is determined
by the Nomination and Compensation Committee and may
not exceed 75 percent of the annual salary. The members of
the Executive Board are included in the share-based incentive
plan for senior management. In April 2021, on the basis of the
incentive plan, the members of the Executive Board received
a reward of 83,897 KONE class B shares together with a cash
payment equal to the amount required to cover taxes and
similar charges arising from the receipt of shares. The
maximum number of shares available for earning for the
Executive Board for the 2021 share-based incentive plan is
233,794 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. The Executive Board
members' holdings of shares are presented in the table on
page 111. No separate agreement regarding early retirement
has been made for the members of the Executive Board. The
compensation for the termination of the employment contract
prior to retirement is a maximum of 15 months' salary, which
includes the salary for a six-month term of notice.
The carrying value of the pension liability for Board
Member Matti Alahuhta (served as President & CEO until
March 31, 2014) included in the balance sheet is EUR 5.8
million at the end of 2021 and the monthly pension paid by
KONE to him is EUR 22,554 (December 2021).
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KONE ANNUAL REVIEW 2021View entire presentation