Remuneration

Componenta's Board of Directors decides on the President's remuneration and other benefits. The Board of Directors decides on the terms of employment of the members of the Corporate Executive Team, based on the proposal of the President and CEO.

The Annual General Meeting decides on the remuneration of the Board of Directors.

Incentive schemes

Each year the Board of Directors reviews the overall bonus to ensure it is competitive and on market terms, the instruments to be used and their weighting, and the targets in the incentive schemes for different target groups. 

Short-term incentive scheme

Short-term remuneration (one calendar year) is based on meeting measurable personal and business targets set for the year.

Long-term share-based incentive scheme

The Board of Directors decides on long-term share-based incentive schemes as part of total remuneration and manages the implementation of the schemes.

A long-term share-based bonus and incentive scheme has been approved and implemented for the years 2010 - 2012. The aim of the plan is to unite the objectives of shareholders and key personnel, in order to increase the value of the company, commit key personnel to the company, and offer them a competitive reward scheme based on ownership of company shares.

The Board of Directors decides on the earnings criteria and on the targets to be set for them for each earning period. The size of the bonus earned in the earning period is determined at the end of the earning period by the extent to which the targets set for the earnings criteria have been achieved.

Any bonuses will be paid in 2011, 2012 and 2013, partly in company shares and partly in cash. The portion paid in cash covers taxes and tax-related costs arising from the bonus. If a bonus of shares is paid under the incentive scheme after the end of an earning period, in proportion to the extent to which the set targets have been achieved, the recipients may not convey, pledge or otherwise use the shares during the two-year restriction period.