Both the President and CEO’s and the Deputy CEO’s remuneration are decided by the Board of Directors based on the proposal by the HR Committee.
Remuneration of Konecranes’ President and CEO and Deputy CEO includes a fixed salary with fringe benefits, performance-based annual variable pay and a long-term, performance-based share plan.
In addition to the Finnish statutory pension, the President and CEO and the Deputy CEO have a supplementary contribution pension benefit provided by the Company. The pension scheme for the President and CEO sets the defined contribution at 20 percent of the annual base salary, including fringe benefits and excluding performancebased compensation (annual or long-term incentives). The contribution level for the Deputy CEO is set at 1 percent of the annual base salary. The retirement age in this supplementary pension plan is 63 years for the President and CEO and 60 years for the Deputy CEO.
Remuneration elements and terms of employment of the President and CEO and Deputy CEO
|
President and CEO Anders Svensson |
Deputy CEO Teo Ottola | |
|---|---|---|
| Base salary |
Fixed salary with fringe benefits |
Fixed salary with fringe benefits |
| Short-term incentives | Based on financial performance Max. 100% of annual base salary |
Based on financial performance Max. 100% of annual base salary |
| Long-term incentives |
Performance Share Plan 2023 and 2024 |
Performance Share Plans 2022, 2023 and 2024 |
| Proportion of fixed and variable pay (as % of total target remuneration) | 32% base salary 16% STI* 52% LTI* * target opportunity, long-term incentive includes only Performance Share Plan |
32% base salary 16% STI* 52% LTI* * target opportunity, long-term incentive includes only Performance Share Plan |
| Pensions | Finnish Statutory pension Defined contribution plan at 20% of annual salary |
Finnish Statutory pension Defined contribution plan at 1% of salary |
| Shareholding requirements | Must hold min. 100% of any net shares given based on reward plans until the value of shareholding equals annual salary, thereafter thereafter 50% until the value of shareholdings equals 150% of annual salary, and membership in the Konecranes Leadership Team continues |
Must hold min. 50% of any net shares given based on reward plans until the value of shareholding equals annual salary, and the membership in the Konecranes Leadership Team continues. |
| Period of notice | 6 months’ notice by the President and CEO and by the company | 6 months’ notice by the Deputy CEO or 9 months’ notice by the company |
| Severance pay | Equals to 12 months’ salary and fringe benefits in case of termination prior to the age of 63, in addition to the salary for the notice period | Equals to 9 months’ salary and fringe benefits, in addition to the salary for the notice period |
| Retirement age | 63 years | 65 years 6 months |
Remuneration paid to the President and CEO and the Deputy CEO in 2024
In 2024, the fixed salary including salaries and fringe benefits paid to the President and CEO amounted to EUR 850,950 and for the Deputy CEO to EUR 348,014.
The short-term incentive payments for 2023 were paid in 2024 and amounted to EUR 778,480 for the President & CEO Anders Svensson and EUR 312,654 for the Deputy CEO Teo Ottola. The short-term incentive plan 2023 for the President & CEO as well as for the Deputy CEO was based on the achievement of the following measures: 65 percent weight on Group comparable EBITA margin, 25 percent weight on Group sales growth %, and 10 percent weight on ESG targets. The actual outcome was 97.3 percent out of the maximum 100 percent.
The short-term incentive plan for 2024 for the President & CEO and Deputy CEO was based on the achievement of the following measures: 65 percent weight on Group comparable EBITA margin, 25 percent weight on Group sales growth %, and 10 percent weight on ESG targets. The short-term incentive payments for 2024 due to be paid in 2025 amount to EUR 748,992 for the President & CEO and EUR 300,344 for the Deputy CEO, and the outcome was 91.6 percent out of the maximum 100 percent.
Rewards based on the long-term Performance Share Plan (PSP) 2021 were paid in 2024. The plan had a three-year-long performance period with three separate one-year-long measurement periods. There were separate targets for each measurement period, and the criterion for all measurement periods (2021, 2022 and 2023) was comparable EPS. Items affecting comparability of the EPS included defined restructuring costs, mergers and acquisitions related transaction costs and other unusual items. The outcome for the PSP 2021 was 70.4 percent. The previous President & CEO did not participate in the PSP 2021, but the Deputy CEO was delivered 11,261 gross shares, of which 50 percent was paid in shares and 50 percent in cash.
The Performance Share Plan 2022 consists of a three-year-long performance period consisting of three one-year-long measurement periods with separate targets decided by the Board of Directors. The criterion for all measurement periods (2022, 2023 and 2024) was comparable earnings per share (EPS). The outcome for the measurement period 2022 was
11.1 percent, the outcome for the measurement period 2023 was 100 percent and the outcome for the measurement period 2024 was 100 percent.
The three-year-long performance period for the PSP 2022 ended in December 2024, and the total outcome was 70.4 percent. The PSP 2022 rewards are due to be paid in 2025, and the Deputy CEO will be delivered 15,484 gross shares, of which 50 percent will be paid in shares and 50 percent in cash. The President & CEO did not participate in the PSP 2022.
The President & CEO Anders Svensson joined Konecranes in October 2022. For retention purposes, at the time of joining the company, he was allocated 17,170 Restricted Share Unit 2017 (RSU) gross shares, of which 40 percent vested on December 31, 2023, with a share delivery of 6,868 shares in January 2024, which were settled fully in shares. 60 percent vested on December 31, 2024, with a share delivery of 10,302 gross shares in January 2025. The Board of Directors decided to settle 50% of the award in shares and 50% in cash to cover taxes.
In 2024, the total remuneration paid to the President and CEO amounted to EUR 1,905,216, and for the Deputy CEO to EUR 1,187,903.
Summary of the remuneration of the President and CEO and Deputy CEO in 2024
| in EUR | President & CEO Anders Svensson |
Deputy CEO Teo Ottola |
|---|---|---|
| Fixed Salary (salaries and fringe benefits) | 850,950 | 348,014 |
| Short-term incentives paid (based on previous year performance) | 778,480 | 298,960 |
| One-time bonus | - | - |
| Value of long-term incentive rewards paid | 275,786 | 540,929 |
| Total Variable Pay | 1,054,266 | 839,889 |
| Total Remuneration paid | 1,905,216 | 1,187,903 |
| Proportion of fixed and variable pay | 45% / 55% | 29% / 71% |
| Estimated short-term incentives due payment (based on previous year performance) | 748,992 | 300,344 |
| Gross shares delivered | 6,868 | 11,261 |
| Performance share rights allocated (# of share rights) | 104,500 | 63,800 |
| Restricted share rights allocated (# of share rights) | 10,305 | - |
| Shareholding in Konecranes Plc (# of shares) | 7,938 | 56,801 |
| Expense of statutory/voluntary pension plans | 456,458 | 110,013 |