In its decision-making and administration, the company observes the Finnish Limited Liability Companies Act, other regulations governing publicly listed companies and the company’s Articles of Association. The Board of Directors has confirmed the company's corporate governance code which follows the Corporate Governance Code of Finnish listed companies approved by the Security Market Association in 2020. The Corporate Governance Code is publicly available, for example, from the Security Market Association's website at www.cgfinland.fi.

Ponsse’s Annual General Meeting made an advisory decision to approve the Company’s remuneration policy in 2020. The purpose of the elements of remuneration defined in the policy is to harmonise the objectives of the shareholders, Board members, and the President and CEO and personnel to grow the company’s value and implement the business strategy over the long term. No deviationion to the remuneration policy were made during the 2020 financial period, and there was no need to recover paid compensation. 

The objective of the remuneration policy is to promote the company’s long-term financial performance and sustainable creation of shareholder value by hiring, committing and motivating the senior management and personnel to implement Ponsse’s strategy.

 

The remuneration policy is based on the following key principles:

• Remuneration overall is found to be competitive
• Remuneration is attractive and commits employees to the company
• Remuneration is fair, equal and comprehensible

Remuneration report 2020

Development of remuneration and financial development over the last five years

(1 000 EUR)	2020	2019	2018	2017	2016
Board of Directors, meeting fee	264	245	241	227	236
President and CEO, taxable income	802	702	966	494	522
Average taxable income of personnel
Parent company	46	51	50	51	48
Subsidiaries	31	33	32	34	32
Financial development
Net sales, EUR million	636.6	667.4	612.4	576.6	517.4
Operating result, % net sales	9.0	10.1	10.1	11.7	10.7