President and CEO Mikko Helander’s personal remuneration, other financial benefits, performance bonus scheme criteria and performance bonuses paid are decided by Kesko's Board of Directors based on the Remuneration Committee's preparatory work. A written managing director's service contract, approved by the Board, is in force between the Company and the President and CEO. Helander has been the Company’s President and CEO and the Chairman of the Group Management Board since 1 January 2015.
The salaries, performance bonuses, share awards and fringe benefits, paid to Helander in 2017-2018 and amount paid in supplementary pension plan are depicted below. Salaries, performance bonuses, share awards and fringe benefits are reported on a cash basis.
Retirement benefits of President and CEO
Old-age pension for the President and CEO begins at 63 and the amount has been agreed to be 60% of the President and CEO’s pensionable earnings in accordance with the Finnish Employees' Pensions Act (TyEL) for the ten (10) calendar years preceding the retirement. The pension is based on a defined benefit plan.
In 2018, it was paid €1,350,000 in the supplementary plan (€1,350,000 in 2017).
Period of notice and termination benefit for President and CEO
The period of notice for the President and CEO is twelve (12) months if the managing director’s service contract is terminated by the Company and six (6) months if Helander resigns. If the Company terminates the contract for a reason other than a material breach of contract by the President and CEO, and the President and CEO does not retire on an old-age pension or some other pension, the President and CEO is paid, in addition to the salary for the period of notice, a compensation corresponding to the combined amount of 12 months' monetary salary and fringe benefits.
A health insurance, life insurance and leisure travel insurance have been taken out for Helander.