Governance

CEO Pajuharju’s salary corresponds to EUR 45,000 per month. The CEO is entitled to an unlimited car benefit and a phone benefit. In addition, the CEO has health insurance and a life insurance policy provided by Kamux, where the beneficiaries are the family members of the CEO.

The objective of the performance-based bonus system (annual performance bonus) is to steer the CEO towards achieving the company’s short-term financial and operational targets as well as to support the realization of the company’s strategy in the short term. The company’s Board of Directors decides on the performance criteria for the annual performance bonus each year. Approved by the Board and based on the achievement of the performance criteria, the bonus is paid in cash after a one-year performance period. The annual performance bonus payable to the CEO may equal up to 12 months’ salary. The annual performance bonus is paid on the condition that the limit for group-level adjusted operating profit, set by the company for incentives, has been met.

In 2025, the performance criteria of CEO Pajuharju’s annual performance bonus is a key figure based on the adjusted operating profit for the financial year and the average value of inventory.

The CEO's long-term incentives are consistent with those of the Group Management Team and key personnel, and CEO Tapio Pajuharju participates in the Performance matching share plan 2025–2029 established for the company’s key employees. 

The performance matching share plan 2025–2029 includes three performance periods, covering the financial years 2025–2027, 2026–2028 and 2027–2029. The Board will decide annually on the commencement and details of a performance period. The prerequisite for participation in the plan and receiving the reward is an allocation of freely transferable Kamux’s shares held by the CEO to the plan or that the CEO acquires Kamux’s shares in a number determined by the Board.

The maximum reward to be paid from the performance period 2025–2027 depends on the CEO’s investment into the plan. The maximum investment set by the Board of Directors for the CEO is EUR 50,000. The corresponding number of shares is dependent on the share price at the time of the investment. The maximum reward is four (4) times the number of shares invested in the plan (expressed as gross number of shares before deducting applicable taxes). The performance criteria for the first performance period are Total Shareholder Return, Group Earnings per Share and an ESG criterion.

The potential rewards to be paid from the performance period 2025–2027 will be paid before the end of May following the end of the performance period.  The potential rewards will be paid partly in shares of Kamux and partly in cash. The cash proportion of the reward is intended for covering taxes and statutory social security contributions arising from the reward to the key employees.

If the CEO’s contract is terminated before the payment of the remuneration, the remuneration is not paid as a rule. The CEO is obliged to hold 50 per cent of the net reward shares received from the performance matching share plan, until CEO’s shareholding in Kamux equals to the CEO’s annual base salary of the preceding calendar year. Such a number of Kamux’s shares must be held as long as the membership of the Management Team or the position as the CEO continues. The Board of Directors may make such changes to the scheme as it deems necessary in the manner specified in the terms and conditions.

The CEO’s retirement age is subject to the applicable legislation. The CEO receives his supplementary pension upon turning 63 years old. Additionally, the CEO is entitled to supplementary pension insurance. The supplementary pension agreement is a defined contribution benefit and amounts to EUR 8,500 per year.

The management contract of the CEO is an indefinite contract with a six-month period of notice. If the company terminates the contract, the CEO is entitled to a severance payment corresponding to the CEO’s six months’ full salary at the time of termination.