Remuneration

Well-functioning and competitive remuneration is an essential tool for engaging competent Board members, key personnel and employees to the Company. The remuneration must be in proportion to the long-term development of the value of the Company. The aim of the remuneration is to encourage employees as individuals and members of a team to achieve the set financial and operative goals and excellent performances.

The principles of remuneration are meant to ensure the achievement of Kojamo’s strategy and business goals. The principles of remuneration must comply with ethical principles and legislative requirements. In addition, all remuneration mechanisms are planned in line with risk management. The remuneration mechanisms strengthen Kojamo’s ability to generate added value to its stakeholders. A further objective is to attract skilled employees through versatile, competitive remuneration.

Principles of remuneration concerning the members of the Board of Directors

The remuneration paid to the members of Kojamo plc’s Board of Directors is decided by the Annual General Meeting. In the Annual General Meeting 2021, it was decided that for the term of office ending with the Annual General Meeting 2022, the following annual fees will be paid to the members of the Board of Directors:

  • EUR 67,500 to the Chairman of the Board
  • EUR 40,500 to the Vice-Chairman
  • EUR 34,000 to each Board member and
  • EUR 40,500 to the Chairman of the Audit Committee.

The Members of the Board are paid only one annual fee according to their role so that no overlapping fees will be paid. In addition, it was decided that an attendance allowance of EUR 600 be paid for each meeting and an attendance allowance of EUR 600 be paid for Committee meetings as well.

It was decided that the annual fee will be paid as company’s shares and cash so that approximately 40 per cent of the annual fee will be paid as Kojamo plc’s shares and the rest will be paid in cash. The shares will be purchased directly on behalf of the Members of the Board. The company will pay any transaction costs and transfer tax related to the purchase of the company shares. The shares in question can’t be transferred earlier than two years from the transaction or before the term of the Member of the Board has ended, depending which date is earlier.

Principles of remuneration concerning the members of the Shareholders’ Nomination Board

The members of the Nomination Board will not receive remuneration for the membership of the Nomination Board. The members’ travel expenses shall be reimbursed according to the Company’s travel policy.

Principles of remuneration concerning the CEO and Management Team

The remuneration of the CEO and other members of the Management Team consists of total remuneration (including fixed pay and benefits in kind) as well as long-term incentive plans.

The CEO’s employment contract can be terminated by the Company with a notice period of 12 months, during which the CEO does not have an obligation to work. The CEO can terminate the contract with a notice period of three months. No separate severance pay has been agreed on in the CEO’s contract.

For the other members of the Management Team, the contract can be terminated by the Company with a notice period of six months, during which the manager does not have an obligation to work. The members of the Management Team can terminate the contract with a notice period of three months. The additional severance pay is equivalent to 6 months’ salary.

Remuneration of the CEO in 2021

The salaries and other benefits paid to the CEO in 2021 are shown in the table below:

Remuneration typeAmount paidShare of total, %
Fixed remuneration32.2
Salary, EUR393,477.49
Benefits in kind, EUR24,834.96
Variable remuneration67.8
Remuneration based on the short-term incentive plan, EUR33,188.36
Remuneration based on the long-term incentive plan (earning period 2017–2019):
In cash, EUR384,667.02
In shares, EUR384,667.02
Number of shares purchased22,482
Share purchase date18 February 2021
Share purchase price, EUR17.11
Total remuneration, EUR1,220,834.85
Other financial benefits
Supplementary pension contributions, EUR66,337.46

Remuneration of other Management Team members in 2021 

The wages and salaries paid to other Management Team members were EUR 1.0 (1.0) million and share-based payments were EUR 1.0 (0.5) million. The sum includes the salaries and fees paid by Kojamo and all of its subsidiaries insofar the persons stated above are employed by the Company.

The management’s pension commitments

The retirement age for the CEO and the members of the Management Team is 63 years. The CEO and the members of the Management Team belong to a contribution-based pension system in which an insurance premium corresponding to two months’ taxable income is paid annually into a group pension insurance plan. In accordance with the terms of the insurance, the insurance savings can be withdrawn starting from the age of 63 or as a supplementary pension complementing earnings related pension. The costs of the statutory pension plan for the CEO and the members of the Management Team were EUR 0.4 (0.4) million, and payments to the voluntary pension plan amounted to EUR 0.2 (0.2) million in 2021.

Incentive plans

Kojamo has two ongoing long-term incentive plans: 2018 and 2021.

The long-term incentive plan aims to align the interests of Kojamo’s shareholders and key employees selected by the Board of Directors in order to increase the Company’s value in the long term and commit the key employees to the implementation of the Company’s strategy and offer
them a competitive incentive plan based on earning and accumulation of the Company’s shares.

The ongoing earning periods (2020–2022, 2021–2023 ja 2022-2024) are share-based. The maximum earning opportunity for each earning period has been defined as a number of Kojamo shares. Half of the shares is paid in shares and half in cash.

Earnings periodBasis for incentivesTarget groupMaximum remuneration
2020–2022– total revenue
– fund from operations (FFO) per share
the members of the Management Team and other key employees, 18 persons in total102,242 shares
2021–2023– total revenue
– fund from operations (FFO) per share
the members of the Management Team and other key employees, 19 persons in total102,277 shares
2022–2024– total revenue
– fund from operations (FFO) per share
– apartment-specific CO2 emission reduction target on years 2022-2024
the members of the Management Team and other key employees, 20 persons in total104,934 shares
Maximum remuneration corresponds to the value of the shares mentioned above including the proportion to be paid in cash.

More detailed information about Kojamo’s incentive plan is available in the Remuneration Policy and Remuneration Report 2021.

Page updated 17 February 2022