Remuneration Principles and Remuneration Policy for Governing Bodies

The remuneration system used in eQ Group is based on the strategy and long-term goals defined by eQ Plc’s Board, and it is an important tool used for reaching the Group’s long-term and short-term strategic goals. The remuneration system contributes to the Group’s good, efficient and comprehensive risk management within eQ Group and, above all, preventing detrimental risk-taking. In addition, the remuneration system takes into account the sustainability risks associated with eQ Group and its business. In addition to eQ Group's remuneration system, eQ Fund Management Company Ltd has its own remuneration principles that supplement eQ Group's remuneration principles, which are based on eQ Fund Management Company Ltd’s role as an alternative investment fund manager and the applicable regulation.

eQ Group’s remuneration principles describe the principles according to which the personnel and management is remunerated. eQ Group’s remuneration principles have been accepted by the Board of Directors of eQ Plc on 5 February 2024. eQ Group’s remuneration principles are reviewed annually and amended as necessary.

eQ Groups Remuneration Principles 2024

The Remuneration Policy for eQ Plc’s Governing Bodies defines the key guiding principles for remuneration of the members of the Board of Directors, including the remuneration of the full-time Chair of the Board, and the CEO. The terms and conditions of the CEO’s and the employees’ salaries and employment relationships have been taken into account when drafting the remuneration policy. Remuneration of eQ Plc’s governing bodies is implemented in accordance with the Remuneration Policy presented to the Annual General Meeting. eQ Plc’s Board of Directors has on 5 February 2024 accepted without any amendments the Remuneration Policy for eQ Plc’s Governing Bodies, which has been discussed by eQ Plc’s Annual General Meeting on 24 March 2021. The Remuneration Policy for eQ Plc’s Governing Bodies is presented to the Annual General Meeting at least once every four years, and whenever material amendments have been made to it.

eQ Plc Remuneration Policy for Governing Bodies 

eQ Plc’s Remuneration Report for Governing Bodies

The remuneration of eQ Plc’s Board of Directors and CEO from the previous financial year is described in eQ Plc’s Remuneration Report for Governing Bodies.

eQ Plc - Renumeration Report for Governing Bodies 2023

Remuneration of the Board of Directors, CEO and other Management Team Members

Decisions concerning the remuneration of the company’s Board of Directors and the CEO are made within the limits of the Remuneration Policy for eQ Plc’s Governing Bodies. The remuneration of other employees and Management Team members is based on eQ Group’s Remuneration Principles and eQ Fund Management Company Ltd’s remuneration principles, where applicable.

Information on the remuneration of the Board of Directors

The Annual General Meeting held in 2024 decided that the members of the Board of Directors would receive remuneration according to following: Chair of the Board EUR 5 000 per month, Vice Chair of the Board of Directors EUR 4000 per month and the directors EUR 3 000 per month. The Annual General Meeting also decided that the directors be paid EUR 750 for each Board meeting that they attend. In addition, travel and lodging costs will be compensated in accordance with the company’s expense policy.

In addition, the full-time Chair of the Board will be paid a monthly salary of EUR 50,000 , based on the agreement regarding full-time Chair of the Board position. The full-time Chair of the Board is not involved in eQ Group's annual bonus scheme. The remuneration is paid in cash.  

The full-time Chairman of the Board has been originally issued as part of eQ Group’s incentive scheme 50,000 option rights on the basis of the option program 2022. The share subscription period with option program 2022 begins on 1 April 2025. The other members of eQ Plc’s Board of Directors have no share-related rights, nor are they covered by any other remuneration scheme.

Information on the remuneration of the CEO

It is important for the company that the salary of the CEO is competitive, as the commitment of the CEO and sufficient incentives are central with regard to the company's success. The Board of Directors decides on the CEO’s remuneration. The remuneration of the CEO consists of a fixed salary in cash (monthly salary and fringe benefits) and an annual performance bonus as described in the Remuneration Policy for eQ Plc’s Governing Bodies and eQ Group’s Remuneration Principles

The fixed salary in cash (monthly salary and fringe benefits) of the CEO amounts to EUR 638 000 per year. The CEO of eQ Plc also participates in the eQ Group's annual bonus scheme. In addition, eQ Plc’s CEO participates eQ’s option programs and the CEO has been originally issued 50,000 option rights on the basis of the option program 2022. The share subscription period with option program 2022 begins on 1 April 2025.

The retirement age and pension of eQ Plc’s CEO are determined in accordance with the Finnish Employees Pensions Act. The CEO does not have a supplementary pension scheme.  

The deferred variable remuneration of the CEO from years 2016–2018, that has not yet been paid out by 31 December 2019 (including changes in stock prices and dividend consideration) was EUR 409 666 in aggregate on 31 December 2019.

In addition, the CEO has been granted option rights in accordance with eQ’s option programs. eQ Group has two option programs: option program 2015 and option program 2018. The CEO has initially received 100 000 option rights based on option program 2015 and initially 100 000 option rights based on option program 2018.

The retirement age and pension of the CEO are determined in accordance with the Finnish Employees Pensions Act. The CEO does not have a supplementary pension scheme.

The terms of the CEO’s service have been specified in writing in the CEO’s service contract approved by the Board. Both parties may give notice on the CEO’s service contract with a period of notice of six (6) months. When notice is given by the company for whatever reason or if the contract is terminated through mutual agreement by the company and the CEO, the CEO is entitled to a severance pay corresponding to his or her overall remuneration for six (6) months preceding the termination of the contract, which is paid on the day when the contract is terminated.

Information on the remuneration of the rest of the Management Team

The Board of Directors decides on the remuneration system of the Management Team based on the CEO's proposal, since in eQ Group it has been resolved that a decision about a person’s remuneration is always made by the superior of the concerned person’s superior.

The remuneration system of other Management Team members than the CEO consists of a fixed salary in cash (monthly salary and fringe benefits) and an annual performance bonus. The principles concerning the remuneration of eQ Plc’s Management Team and the annual bonus scheme are further described in eQ Group’s Remuneration Principles.

In 2023, the other Management Team members than the CEO were paid an overall remuneration of EUR 1 730 629, the share of the variable remuneration being EUR 1 054 506.

The deferred variable remuneration of the other Management Team members than the CEO from year 2020, that has not yet been paid out by 31 December 2023 (including changes in stock prices and dividend consideration) was EUR 107 199 in aggregate on 31 December 2023.

In addition, the Management Team members have been granted option rights in accordance with eQ’s option programs. The other Management Team members than the CEO have initially received 110 000 option rights based on option program 2022. The share subscription period with option program 2022 begins on 1 April 2025.

The retirement age and pension of the Management Team members are determined in accordance with the Finnish Employees Pensions Act. The other Management Team members than the CEO do not have supplementary pension schemes.

The notice period of the Management Team members varies between 1 to 3 months. The other members of the Management Team do not have severance pays decided on in advance.

Other relevant persons

eQ Group has identified other relevant persons than the Management Team members whose professional conduct has a significant impact on the risk profile of the eQ Group (Finnish Act on Credit Institutions 610/2014, Chapter 8). The Board conducts an annual assessment in order to identify such persons. In the identification process the risks relating to the business and strategy are evaluated in respect of each person, each group of persons and each area of responsibility. The identification process is part of eQ Group’s remuneration scheme and it takes into account EBA and ESMA guidance.

In 2023, other relevant persons than the Management Team members were paid an overall remuneration of EUR 4 553 479, the share of the variable remuneration being EUR 2 696 996.

The deferred variable remuneration of the other relevant persons than the Management Team members from year 2020, that has not yet been paid out by 31 December 2023 (including changes in stock prices and dividend consideration) was EUR 232 877 in aggregate on 31 December 2023.

In addition, the other relevant persons than the Management Team members have been granted option rights in accordance with eQ’s option programs. The other relevant persons than the Management Team members have initially received 190 000 option rights based on option program 2022. The share subscription period with option program 2022 begins on 1 April 2025

Updated July 05 2024