The aim of YIT's remuneration system 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.
We publish the Remuneration Statement according to Finnish Corporate Governance Code 2015. The statement contains a description of the main principles of YIT's remuneration policy as well as information concerning remuneration of the members of the Board of Directors, President and CEO and Group Management Board.
Decision-making regarding remuneration
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 CEO’s deputy and members of the Group’s Management Board.
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.
Principles of remuneration at YIT
The basis of remuneration is a fixed salary, in addition to which most of the Group’s salaried employees are included in a short-term performance-based bonus scheme. The Board of Directors confirms the criteria for the payment of performance-based bonuses annually.
The bonuses paid are determined on the basis of the realisation of personal profit objectives, the Group’s financial result, and the attainment of profitability, growth and development objectives. Performance and development discussions are an essential part of the management by key results system. In these discussions, employees and their superiors agree on the key objectives and their relative weighting and review the fulfilment of the previously agreed objectives. The key principles and objectives for the result period influencing the personal performance-based bonuses are specified at the business division and unit level.
The maximum annual performance-based bonus paid to the CEO and the Group Management Team may equal 50–60 per cent of their annual remuneration (salary and fringe benefits).
Other monetary rewards in use at YIT include years-of-service bonuses.