Remuneration of the Neste Leadership Team

The remuneration of the members of the Neste Leadership Team is reviewed annually by the People and Remuneration Committee and any changes are approved by the Board of Directors. 

The Personnel and Remuneration Committee reviews market benchmark data from Finnish and international industrial companies of a similar size and complexity to Neste when setting total remuneration package for the members of the Neste Leadership Team. This is used more as a guide than a direct determinant of pay levels. Other factors considered include the level of salary increases for Neste’s employees globally, business and individual performance, and role scope.

Short-term incentives

The purpose of the short-term incentive plan is to reward and incentivize improvements in short-term financial and operational performance and support the delivery of the business strategy.

Performance period 2025

The maximum short-term incentive for the Neste Leadership Team members is 60 percent of annual base salary.

STI is based on the achievement of annual financial and safety measures. The short-term incentive 2025 is based on Renewable Products comparable EBITDA, Oil Products comparable EBITDA, Group Free Cash Flow and Group safety measures TRIF and PSER.

Long-term incentives

The objectives of the share-based long-term incentive scheme are to align the interests of Neste’ management and key employees with those of the Company’s shareholders and, thus, to promote shareholder value creation in the long term, to commit management to achieving Neste’s strategic targets and to retain its key employees.

Currently the maximum LTI earning opportunity for the Leadership team members is 120% of annual fixed salary at grant. The combined value of variable remuneration elements (the STI and LTI) paid during a calendar year cannot exceed 200% of annual fixed compensation.

Other remuneration elements

Pension

Supplementary pension arrangements exist for those who have started in the company before 1 January 1994: a defined benefit (DB) plan based on a retirement age of 60 (up to 60% of retirement salary). Retirement salary for DB schemes is calculated based on the average monthly salary and related statutory pension insurance contributions over the ten years prior to retirement.

Other benefits

The Neste Leadership Team members have company car benefit or car allowance depending on the location, mobile phone benefit in Finland, private accident-, life- and disability insurance, business travel, directors’ and officers’ liability insurances. The Neste Leadership Team members may participate in the sickness fund (in Finland).

Service contracts and loss of office payments

Neste Leadership Team members are entitled for 6 months’ severance payments. Change of control terms are the same as for termination.

Remuneration in 2024