Compensation and incentive schemes

The Annual General Meeting decides on the fees of the Board of Directors. The Board of Directors decides on the president’s and his deputy’s salary, remuneration and other terms of employment. The Board also decides on the salaries and fees of the members of the Group’s Management Board.

Performance bonuses

Most of the Group’s salaried employees are included in a performance bonus scheme. The Board of Directors confirms the criteria for the payment of performance bonuses annually. The bonuses paid to management are determined on the basis of the realization of the Group’s strategic profitability, growth and development objectives and personal objectives.

Share option programmes

The General Meeting decides on share option issues and the terms and conditions of the option programmes. On the basis of the terms and conditions of YIT’s share options, the Board of Directors decides on the distribution of options annually.

Remuneration of Board members in 2007

The Annual General Meeting held on March 16, 2007, decided to pay members of the Board of Directors remuneration for the entire term of office as follows:

• chairman EUR 6,000 per month, or EUR 72,000 per year 
• vice chairman EUR 4,500 per month, or EUR 54,000 per year 
• members EUR 3,500 per month, or EUR 42,000 per year

Furthermore, it was decided that a meeting fee of EUR 500 will be paid to all the members of the Board of Directors for each Board meeting and EUR 500 to the members of the Audit Committee for each committee meeting. Per diems for trips in Finland and abroad are paid in accordance with the State’s travelling compensation regulations. YIT’s Board members are not covered by the company’s share option schemes.

The fees of YIT Corporation’s Board members totalled EUR 278,500 in 2007.

Remuneration paid to the president and CEO, his deputy and the Group’s Management Board in 2007

Loans to closely associated parties

The president and CEO, his deputy and the members of the Board of Directors did not have cash loans from the company or its subsidiaries on December 31, 2007.

Retirement ages and termination compensation

The retirement age of the president and CEO and that of his deputy has been set at 62. The contractual retirement age of one of the members of the Group’s Management Board is 60. In other respects, the statutory retirement age applies to the members of the Management Board.

The period of notice of the president and CEO and the deputy to the president and CEO is six months. If the company terminates his contract, the CEO or the deputy to the CEO shall also be paid separate compensation amounting to 12 months’ salary.

Updated May 15, 2007
InvestorRelations@yit.fi