Remuneration of the Konecranes leadership team and senior management

The Board evaluates and decides on the total remuneration of the Konecranes Leadership Team (KLT) members and other executives reporting directly to the President and CEO.

Salaries

The base salaries and fringe benefits of Konecranes Leadership Team members reflect the performance and individual job responsibilities, experience, skills and knowledge.

Short-term Incentives

The KLT members’ annual variable pay is based on the Group’s financial performance and on business area performance, if applicable for the person. The annual variable pay percentage is based on the individual responsibilities and is at maximum 150 percent of the individual annual base salary (50 percent of the maximum being the target level).

In 2023 the short-term incentive plan had three main criteria: comparable EBITA%, sales growth % on a group level or Business Area level, where applicable, and ESG target. More information on the short-term incentives can be found under section “Remuneration elements”.

 

Long-term Incentives

KLT members are entitled to participate in the Company’s long-term incentive programs. They  have an obligation to continue to own at least 50 percent of the shares earned annually through the Performance Share Plan until their ownership of the Company shares equals their annual salary. More information on the long-term incentives can be found under section “Long-term Incentive Plans”.

Pensions

The Finnish members of the Konecranes Leadership Team participate in a defined group pension insurance scheme, which can be withdrawn from at the age of 60. However, the retirement age is set according to the Finnish Employees Pensions Act (TyEL). The Finnish Konecranes Leadership Team members have life insurance and disability insurances. The non-Finnish members participate in a contribution-based pension plan and have local insurance cover.

Terms relating to the termination of the employment relationship

The period of notice for the members of the Konecranes Leadership team varies between 3 to 6 months, and the severance pay is normally 9 months in addition to the salary during the notice period. The actual rules depend on the time when members joined Konecranes.