Remuneration

Remuneration at Finnair is based on the principles of performance, fairness and competitiveness. Remuneration shall support the achievement of Finnair´s strategic goals and sustainability strategy, align the management’s priorities with the interests of Finnair´s shareholders, encourage behaviour consistent with Finnair’s values, and reward excellent performance. These principles apply to the CEO and the rest of the personnel, as stated in Finnair’s internal Compensation Policy for personnel.

Remuneration is designed to attract and retain desired talent, motivate the delivery of the company’s strategy and maximise shareholder value creation. The targets and rewards in the incentive systems are balanced between long-term value creation and efficient achievement of short-term goals.

Remuneration Governance

The Board of Directors' remuneration

The Shareholders’ Nomination Board is tasked with proposing the remuneration for members of the Board of Directors at the AGM. The proposal shall be based on the principles defined in the Directors’ Remuneration Policy. The AGM makes the final decision on the Board of Directors’ remuneration.

Remuneration of the CEO and the Executive Board

The Board of Directors, with the assistance of its People and Remuneration Committee, reviews and approves the remuneration principles for the CEO as defined in the Directors’ Remuneration Policy. The Board of Directors also decides on the CEO’s salary, incentive schemes and associated targets based on preparatory work by the People and Remuneration Committee.

Usually, the CEO participates in the People and Remuneration Committee’s meetings, except for matters relating to the CEO’s remuneration and other terms of service.

Remuneration and decision-making procedure

The Annual General Meeting (AGM) decides annually on the remuneration and other financial benefits of the members of the Board of Directors and its committees. The election and remuneration of the members of the Board are prepared by the Nomination Board formed by the representatives of the company’s largest shareholders. The remuneration of the Board of Directors and its committees is paid in cash and shares. The non-executive members of the Board of Directors are not eligible to participate in the same share-based incentive plans or other incentive plans as the executive management.

The 2025 Annual General Meeting decided on the board's remuneration in accordance with the proposal of the shareholders' nomination committee as follows:

• Chair EUR 80,000 (2024: EUR 72,000) per year;
• Vice Chair EUR 48,000 (2024: EUR 39,000) per year; and
• Member EUR 40,000 (2024: EUR 35,000) per year.

Fixed fees for Committee work

Chairs of the Audit Committee and the People and Remuneration Committee are paid EUR 6,000 (2024: EUR 6,000) per year, and the members of the Committees EUR 3,000 (2024: EUR 3,000) per year. Similar fixed fees are paid to the Chairs and members of other permanent Committees possibly established by the Board of Directors.

Meeting fees

A meeting fee of EUR 800 (2024: EUR 800) is paid to the members of the Board of Directors participating in a Board or Committee meeting when the meeting takes place in the member’s country of residence, and EUR 3,200 (2024: EUR 3,200) for other meetings. For remote and telephone meetings, the meeting fee is EUR 800 (2024: EUR 800).

The members of the Board of Directors are entitled to reimbursement of reasonable travel expenses in accordance with the Company’s general expenses policy.

The members of the Board of Directors and their spouses are entitled to discounted travel on the Company’s flights in accordance with the Company’s discount ticket policy regarding the Board of Directors.

The remuneration of the Board of Directors in the financial year 2024 is reported in the Remuneration Report.

The Board of Directors decides on the salary, incentive plans and associated targets of the CEO and other members of the Executive Board based on preparatory work carried out by the People and Remuneration Committee.

When determining remuneration elements, the Board of Directors considers aspects it deems relevant to the Company’s best interests, including, significant shareholders’ remuneration principles, shareholders’ and other investment market stakeholders’ views on remuneration and relevant market and peer group remuneration practices. The Board evaluates how to best observe these views and principles in the Company’s interest at any given time.

The salaries and bonuses paid to the CEO during the financial year 2024 are reported in the Remuneration Report.

Remuneration paid to the members of the Executive Board in 2024

(1)     Base salary including holiday bonus.
(2)     Benefits include company car, phone, staff tickets and possible voluntary health insurance.
(3)     Short Term Incentive Plan 2022 was cancelled for the CEO and Executive Board members. One Executive member is entitled to Short Term Incentive 2022 bonus paid in 2023 from the time she was not an EB member.
(4)     Long Term Incentive Plans 2020–2022 and 2021–2023 were cancelled for the CEO and Executive Board members.
(5) Rebuild Plan was paid in 2023 according to 120 percent yearly pay gap to the Executive Board 2023. The part exceeding the 120% gap was paid in 2024.

Variable remuneration shall support the achievement of Finnair´s strategic goals and sustainability strategy, align the management’s priorities with the interests of Finnair’s shareholders, encourage behaviour consistent with Finnair’s values, and reward excellent performance. Performance targets for the CEO and members of the Executive Board are set by Finnair’s Board of Directors. The maximum combined value of STI and LTI paid in a year is limited to 200% of the annual base salary.

Short-term incentives (STI)

The STI plan aims to drive short-term (annual) performance against specific targets based on key strategic priorities for the year. Performance criteria are set annually by the Board of Directors based on the key priorities for the financial year. These may include financial and non-financial criteria, such as but not limited to sustainability-related metrics.

In 2025, for the CEO, the target level of incentive compensation is 40%, and the maximum level is 80% of base salary. For other executive team members, the target level is 30% and the maximum level 60% of base salary.

Profit-sharing plan (Personnel fund)

Finnair has had a Profit-sharing plan in which a share of Finnair’s profits is allocated to its personnel. The shares of personnel working in Finland have been directed to a personnel fund owned and controlled by the personnel, and the shares of personnel working outside Finland have been paid through normal salary payments. Finnair’s CEO and other members of the Executive Board have been excluded from the profit-sharing plan, as have the persons covered by the Performance share plan.

No targets have been set for the profit-sharing plan during years 2021–2025.

Performance Share Plan (PSP)

Finnair has a performance-based, share-based incentive scheme for a limited number of top management and key employees. The purpose of the scheme is to encourage participants to increase shareholder value in the long-term, and to commit them to the company.

The individual share plans starting annually include a three-year performance period. An exception to this was the two-year performance period, that covered years 2023–2024. The Plan offers participants the opportunity to earn Finnair shares as a long-term incentive reward if the performance targets set by the Board for the scheme are met. The potential rewards will be delivered to the participants in shares and cash in the year following the performance period and they are at the participants’ free disposal after delivery. The members of the Executive Board are expected to retain at least fifty percent of the net shares received based on the LTI plans until their share ownership in Finnair corresponds to at least their annual gross base salary.

The shares are taxable income, and taxes are deducted from the gross number of shares. The remaining net shares are delivered to the participants’ book-entry accounts.

A person is not entitled to the share reward if he or she resigns or if a notice of termination is given before the date of payment. The Board of Directors is also entitled, subject to a particularly weighty reason, to change or cancel the incentive or to postpone its payment. The Board of Directors is entitled to remove a participant from the share plan if the person has committed a significant offence or acted in a manner detrimental to the company or contrary to the company’s interests.

On-going Performance Share Plans (updated 13 June 2025):

¹The maximum amount of gross shares to be paid (including taxes) if the performance criteria are fully met.

Performance criteria and achievements of the plans already ended:

Finnair Directors' Remuneration Report 2024
Finnair Remuneration Statement 2023
Finnair Directors' Remuneration Report 2022
Finnair Directors' Remuneration Report 2021
Finnair Directors' Remuneration Report 2020
Finnair Remuneration Statement 2019
Finnair Remuneration Statement 2018
Finnair Remuneration Statement 2017
Statement on the CEO’s supplementary pension
Finnair Remuneration Statement 2016
Finnair Remuneration Statement 2015
Finnair Remuneration Statement 2014
Finnair Remuneration Statement 2013