All Konecranes remuneration related decisions are made by the ’one above’ principle. In other words, the remuneration of an employee must always be accepted by his/her manager’s superior. The decision-making process is depicted in the chart below.
Remuneration of the Board of Directors
The Annual General Meeting decides on the remuneration of the Board of Directors and the Board’s Committees annually. The decision proposals are prepared by the Shareholders’ Nomination Board.
Remuneration of the President and CEO
The Human Resources Committee reviews the CEO’s performance and prepares the proposal for the total remuneration elements. External market data from peer companies operating in a similar global industry and advisers are used to support the proposal preparation and the performance review. Based on the Human Resources Committee’s evaluation, market benchmarking and other relevant facts, the Board determines the total remuneration elements for the President and CEO. This approach ensures that there is no conflict of interest and the plan details for the upcoming year support the achievement of the group’s strategic targets without encouraging unnecessary or excessive risk.
Remuneration of the Konecranes Leadership Team and Senior Management
The Board evaluates and decides on the total remuneration of the Konecranes Leadership Team members and other executives reporting directly to the President and CEO.