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Remuneration of the President and CEO

The remuneration of the President and CEO consists of fixed salary (base salary and fringe benefits in Finland), and other benefits or programs, and of variable elements such as short-term incentives (STI) and long-term incentives (LTI). 
 
The Personnel and Remuneration Committee reviews market benchmark data from Finnish and, where necessary, international industrial companies of a similar size and complexity to Neste when setting total remuneration package for the President and CEO. 
 
President and CEO Matti Lehmus’ fixed salary is 71,000 EUR per month, including taxable benefits (car and mobile phone benefit). In addition, President and CEO is entitled to vacation pay.
 

Long-term incentives

PSP 2022-2024

Number of original shares granted was 26,400. Performance measure is Relative Total Shareholder Return 2022–2024 (TSR, weight 80%) versus the STOXX Europe 600 index and Combined Greenhouse Gas Impact 2022–2024 (GHG, weight 20%) measured cumulatively in CO2 equivalent, shares will vest in March 2025, no holding period. 

President and CEO Matti Lehmus is entitled also to PSP 2020-2022 and PSP 2021-2023 based on his previous role as Executive Vice President, Renewables Platform:

PSP 2020-2022: Performance measure is Total Shareholder Return (TSR, weight 100%) vs STOXX Europe 600 index, shares will vest in March 2023, no holding period.
 
PSP 2021-2023: Performance measure is Relative Total Shareholder Return 2021–2023 (TSR, weight 80%) versus the STOXX Europe 600 index and Combined Greenhouse Gas Impact 2021–2023 (GHG, weight 20%) measured cumulatively in CO2 equivalent, shares will vest in March 2024, no holding period. 

Short-term incentives

Performance period 2022

The maximum short-term incentive for the President and CEO is 80 percent of annual base salary in 2022. The short-term incentive is based on EBITDA comparable, Free Cash Flow, Adjusted ROACE and group safety measures of TRIF and PSER. Potential reward payment is in March 2023.

Other remuneration elements

Pension CEO is entitled to supplementary defined contribution pension plan (DC). The supplementary pension contribution is 16% of annual fixed base salary and retirement age is 62 years.
Other benefits CEO has the company car benefit, mobile phone benefit, private accident-, life- and disability insurance, business travel, directors’ and officers’ liability insurances. President and CEO may participate in the sickness fund in Finland.
Share ownership guidelines President and CEO must accumulate and maintain a shareholding which is equivalent to personal annual fixed salary. Until this threshold is met, participants must retain 50% of vested incentive shares after tax.
Service contracts and loss of office payments Both parties have a six-month period of notice. Should the Company terminate the President and CEO’s agreement, the Company is required to pay six month’s salary and a separate severance pay equivalent to six month’s salary.