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The aim of YIT’s remuneration systems is to reward good performance, increase the personnel’s motivation and commit the company’s management and its employees to the company’s objectives in the long term.
The remuneration reporting for the financial year 2019 complies with the instructions for the Remuneration Statement contained in the old Corporate Governance Code 2015. Remuneration Statement includes a description of the key principles for remuneration and information on rewards paid to the Board of Directors, the President and CEO and the Group Management Team.
Remuneration Report presents the paid and outstanding remuneration to the governing bodies for the previous financial year and it will be presented annually to the Annual General Meeting. The Remuneration Report will be compiled for the first time for the 2020 financial year, and it will be addressed at the Annual General Meeting 2021.
Starting from the 2020, the remuneration principles for YIT’s governing bodies, i.e. the Board of Directors and the President and CEO, are described in the Remuneration Policy, which will be addressed for the first time in the Annual General Meeting 2020.
The Remuneration Policy complies with the recommendations of the Finnish Corporate Governance Code (2020) and the Shareholders’ Rights Directive legislation.
YIT Corporation’s Annual General Meeting decides on the fees for the Board of Directors. The Board of Directors decides on the salary and fees and other terms of employment of the CEO and other key Group employees, such as the members of the Group’s Management Team. In addition, the Board of Directors decides annually both short and long-term indicators for management remuneration and the target values for the indicators which are designed to support the achievement of the strategic goals. On the basis of the President and CEO’s proposal, the Board of Directors also decides on the amount of fees and whether the indicator-based goals have been reached.
The task of the Personnel Committee is to assist the Board in matters related to appointing and rewarding key personnel. Among other things, the Personnel Committee prepares proposals for the development of the Group's corporate culture and HR policy, remuneration and incentive schemes, the rules for performance-based bonuses and the proposals for performance-based bonuses paid to the management. In addition, identifying talents, the development of key personnel and planning for management successors fall under the preparation responsibility of the Committee.
The Shareholders’ Nomination Board of YIT Corporation is a body comprised of the company’s shareholders or their representatives, the duty of which is to prepare proposals on the election and remuneration of the members of the Board of Directors for the Annual General Meeting. The primary purpose of the Nomination Board is to ensure that the Board of Directors and its members have sufficient expertise, competence and experience in view of the Company’s needs, and to prepare proposals, with justifications, on the election and remuneration of members of the Board of Directors to the General Meeting for this purpose.