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Remuneration of the Board

The Annual General Meeting decides on the remuneration of the Board members based on the recommendation of the Shareholders’ Nomination Board. The remuneration of the Board of Directors consists of an annual fee and meeting fee. The meeting fee is paid for every meeting attended.

The Board members do not receive shares or share derivatives as remuneration for their membership nor do they participate in Fazer ’s incentive programs.

In 2021, remuneration to the Board of Directors totalled EUR 583 thousand.

Remuneration of the President and CEO and the Fazer Leadership Team

The Board of Directors decides on the compensation and benefits of the President and CEO. The Chairman of the Board of Director approves the salary and other benefits of the Fazer Leadership Team. The remuneration of the President and CEO and the Members of the Fazer Leadership Team consists of a fixed monthly salary, fringe benefits, an annual short-term incentive, other benefits and a long-term incentive plan, which is intended as a long-term reward. The annual bonus is determined on the basis of Fazer’s financial performance.

Short-term incentives

The Short-term incentives (STI) are based on Fazer’s financial performance. The criteria for payments are typically LTAF (Lost Time Accident Frequency), consolidated result, result of the business area or business unit as well as functional targets.

Long-term incentives

Fazer Long-term Incentive (LTI) is an incentive programme aiming to drive the success of the company and to engage and motivate key employees to strive for company’s long-term success.

LTI target group is defined annually by Fazer's Board of Directors. The criteria for eligibility is a role in Fazer Leadership Team, Extended Fazer Leadership team, Business Area Management Team or other key Leader role. In order to be eligible for the LTI bonus program and payment, employee needs to work 8 months in LTI eligible position during the program year and to be employed by Fazer Group at the time of the respective LTI payment. LTI payment is approved by Fazer Board of Directors. LTI bonus percentage is defined based on the employee’s job grade (Fazer Job Grade, FJG) and equals the percentage used in yearly short-term performance bonus.

The Board of Directors resolves on the plan’s performance criteria and on the performance levels at the beginning of each performance period. The key employees will receive the incentive, if the performance levels of the performance criteria, set by the Board of Directors, are achieved. Once the LTI has been approved by the Fazer Group Board of Directors, 1/3 of the earned LTI bonus is paid in cash. For commitment creation, 2/3 of the earned LTI bonus is banked in the account. 1/3 is paid 2nd and 1/3 3rd year.

Period of notice and retirement

The President and CEO’s period of notice is six (6) months for the individual and twelve (12) months for the Company unless otherwise decided on a weighty ground. If the President and CEO's executive contract is terminated, any payable remuneration is determined in compliance with local legislation, Company policies, contractual obligations and the terms and conditions of the applicable short- and long-term incentive and benefit plans. Any severance payment in the event that the Company terminates the President and CEO agreement will not generally exceed the value of twelve (12) months’ fixed base salary and financial benefits (excluding bonus). The President and CEO has the possibility to retire at 62 years of age. The President and CEO is entitled to a supplementary pension that exceeds the statutory scheme. Some of the members of the Fazer Leadership Team have a collective pension arrangement, which gives them the right to retire at the age of 62.

EUR thousand



President and CEO and Fazer Leadership Team

Paid salary



Short-term benefits



Long-term benefits



Total salary



Fringe benefits