Cargotec’s governance and management are based on the Finnish Limited Liability Companies Act and Securities Markets Act, as well as the company’s Articles of Association and Code of Conduct. Cargotec class B share is listed at Nasdaq Helsinki and the company complies with the rules and guidelines of Helsinki Exchange and the Finnish Financial Supervision Authority. In 2019, Cargotec complied with all the recommendations of the Finnish Corporate Governance Code 2015, published by the Securities Markets Association and as of 1 Jan 2020, Cargotec complies with the Corporate Governance Code 2020 (www.cgfinland.fi).
The Annual General Meeting (AGM) decides on the remuneration of members of the Board of Directors, on the basis of a proposal made by the Board, on the recommendation of the Nomination and Compensation Committee (NCC). In determining such remuneration, the committee takes account of the Board members’ responsibilities and obligations towards the company. Furthermore, the committee compares the Board’s remuneration packages to those paid by other companies of the same size operating in a comparable business environment.
Cargotec’s compensation and benefits policy is applied in determining the total remuneration of the CEO and Leadership Team. The policy is approved by the Board of Directors. Based on a proposal by the NCC, the Board decides on the annual base salary, short-term incentive programmes and benefits of the CEO and the Leadership Team. In addition, the Board of Directors decides on long-term incentive programmes and on the target group and allocation of such programmes based on a proposal by the NCC.
Based on the decision of the AGM of 27 May 2020, the Board’s annual remunerations are as follows:
• Chairman: EUR 85,000
• Vice Chairman: EUR 60,000
• Chairman of the Audit and Risk Management Committee: EUR 60,000
• Other Board members: EUR 45,000
In addition, a fee of EUR 1,000 is paid for attendance of meetings of the Board and its committees.