Toggle main navigation Section navigation Investors Governance Remuneration Valmet’s Remuneration Principles Well-functioning and competitive remuneration is an essential tool for engaging competent members at the Board-level, as executives and as experts on all levels of the organization. Remuneration must be in proportion to the long-term value creation and the achievement of the strategic objectives of the Company. Remuneration on all levels of the organization is built on the following principles: DRIVING HIGH PERFORMANCE The objective of remuneration at Valmet is to encourage employees as individuals and as team members to achieve the set financial and operational targets and to strive for excellent performance. A key element of Valmet’s remuneration is the implementation of a pay-for-performance culture. All employees are eligible for a performance reward or bonus, linking rewarding to performance and strengthening individual and team accountability. For key personnel and top management, including the President and CEO, a notable part of remuneration comes from variable pay, i.e. short-term and long-term incentives, to ensure that remuneration is aligned with the Company’s financial performance and linked to the successful implementation of the business strategy. Board member compensation is set in the Annual General Meeting. COMPETITIVE REMUNERATION TO RETAIN TALENT WITH THE BEST FIT In determining appropriate remuneration levels, Valmet applies a benchmark approach, ensuring that remuneration is aligned with internal and external references and observing remuneration levels for similar positions among peer companies in the geographical area. Valmet’s approach is not to be the market leader in pay, but to offer competitive remuneration to retain talent with the best fit. Valmet also utilizes a benchmark approach when determining remuneration levels for the President and CEO and the Board of Directors. FAIRNESS AND SUSTAINABILITY Valmet aims to ensure equal treatment and fair remuneration of employees at all levels of the organization by linking remuneration to role, local salary market and individual and/or team performance. Valmet’s remuneration approval principles are designed to ensure that changes in pay are always subject to grandparent approval. This supports the equality and impartiality of decisions related to pay at all levels of the organization. Valmet’s variable pay schemes support sustainable business by linking selected sustainability topics, such as health and safety and sustainable supply chain, to remuneration. Sustainability is important to Valmet’s overall financial success as well as share price development and thus affects the total remuneration of Board members as well as the President and CEO. Decision-making process All remuneration-related decisions require grandparent approval. In other words, the remuneration of an employee must always be approved by the manager’s manager. The decision-making process for the remuneration of the Board of Directors, the President and CEO and the Executive Team is summarized in the chart below. Remuneration Policy Remuneration Report 2020 Updated; May 6, 2021 Pulp Complete pulp mills Chemical pulping Wood handling Cooking and fiber line Pulp drying and baling Chemical recovery Air emission control New value-adding processes Dissolving pulping Mechanical pulping Recycled fiber Automation for pulp Services for pulp Fiber Technology Center Pulp references Pulp news and stories Board and paper Recycled fiber Stock preparation Board and paper machines Services for board and paper Automation for board and paper Industrial Internet Service Centers References Board and paper news and stories Search for products & services Tissue Complete tissue mills solutions Machine sections and rebuilds Development and pilot trials Services for tissue producers Automation for tissue References Industrial Internet Tissue Talks Insight Sustainability Learning services Tissue News Tissue Talks Contact Tissue Local websites 中文 - Chinese Suomi - Finnish Français - French 日本語 - Japanese Português - Portuguese Pусский - Russian Español - Spanish Svenska - Swedish ไทย - Thai Australia & New Zealand North America Deutsch - German Energy Energy solutions BFB Boiler CFB Boiler Gasifier Power plants Heating plants Air emission control Industrial Internet solutions Services for energy Automation for energy Technology development Energy news and stories More industries Alternative fuels Biofuels and biomaterials Chemical industry Fiberboard Filtration Food industry Laundry industry Marine Minerals and metals Nonwovens Oil and gas Wastewater Paper converting Pharmaceutical industry Petrochemical industry Automation Distributed control system Industrial applications Quality management Analyzers and measurements Condition monitoring Industrial Internet Automation projects Automation services About Us Valmet in brief Contact us Strategy Management Code of Conduct Careers Research and development Procurement Valmet's value creation Translate Valmet product names Industrial Internet Valmet Customer Portal Learning Services Service centers References Investors Valmet as an investment Reports and presentations Sustainability for investors Valmet share Shareholders Governance Financial information Events and calendar Investor relations Sustainability Sustainability at Valmet Sustainable supply chain Health, safety and environment People and performance Sustainable solutions Corporate citizenship Climate program Circular economy Sustainability reporting Media News Articles Customer magazine Blogs Podcasts Newsletters Social media Events calendar Media contacts Image gallery Video gallery Downloads Services Services for board and paper production Services for pulp production Services for tissue making Services for energy FOLLOW US Sitemap About this site Legal notice Trademarks Privacy notice Cookie preferences Contact us Social media © 2021 Valmet We use cookies and 3rd party solutions to optimize site functionality and give you the best possible experience while browsing our site. If you are fine with this and accept all cookies just click 'Accept' button. You can also review our Privacy notice. Necessary cookies only Accept Manage cookie preferences