Remuneration at Finnair is based on the principles of performance, fairness, and competitive remuneration. 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.
Remuneration is designed to attract and retain the desired talent, motivate employees to deliver the strategy as well as to maximise shareholder value creation. The targets and rewards in the incentive systems are balanced between long-term value creation and efficient achievement of the short-term goals.
Remuneration Governance
The Board of Directors' remuneration: The Board of Directors, with the assistance of its People and Remuneration Committee, reviews and prepares the remuneration principles for the members of the Board of Directors as defined in the Directors' Remuneration Policy. The Shareholders’ Nomination Board makes an annual proposal to the Annual General Meeting (AGM) on the remuneration of the members of the Board of Directors. 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. According to the decision of the AGM, the Chairman of the Board of Directors is not a member of the Shareholders’ Nomination Board but as as an expert advisor to the Nomination Board.
Remuneration of the CEO and the Executive Board: The Board of Directors reviews and approves the remuneration principles for the CEO and the Executive Board. The Board of Directors also decides on the salary, incentive plans and associated targets of the CEO and the Executive Board. These processes are completed based on preparatory work carried out by the Board of Directors’ People and Remuneration Committee. The remuneration is based on principles defined by the Directors’ Remuneration Policy.
The CEO normally participates in the People and Remuneration Committee’s meetings, except for matters relating to the CEO’s service terms and remuneration.
Directors' Remuneration Policy
The Directors' Remuneration Policy for governing bodies has been prepared in accordance with the Corporate Governance Code 2020.
Directors' Remuneration Policy (updated 17 February 2021)