Remuneration of the Neste Leadership Team

The remuneration of the members of the Neste Leadership Team is reviewed annually by the People and Remuneration Committee and any changes are approved by the Board of Directors. 

The Personnel and Remuneration Committee reviews market benchmark data from Finnish and international industrial companies of a similar size and complexity to Neste when setting total remuneration package for the members of the Neste Leadership Team. This is used more as a guide than a direct determinant of pay levels. Other factors considered include the level of salary increases for Neste’s employees globally, business and individual performance, and role scope.

Short-term incentives

The purpose of the short-term incentive plan is to reward and incentivize improvements in short-term financial and operational performance and support the delivery of the business strategy.

Performance period 2024

The maximum short-term incentive for the Neste Leadership Team members is 60 percent of annual base salary. 

STI is based on the achievement of annual financial and safety measures: For the Neste Leadership Team members with Business Unit responsibility short-term incentive 2024 is a combination of Group financial and safety measures (Group comparable EBITDA, Group Free Cash Flow, Group Comparable ROACE, TRIF and PSER) and Business Unit specific strategic, financial and safety targets. For the Neste Leadership Team members with Function responsibility short-term incentive 2024 is based on Renewable Products and Oil Products comparable EBITDA, Group Free Cash Flow, Group Comparable ROACE, TRIF, PSER and specific strategic target of the Function in question.

Long-term incentives

The objectives of the share-based long-term incentive scheme are to align the interests of Neste’ management and key employees with those of the Company’s shareholders and, thus, to promote shareholder value creation in the long term, to commit management to achieving Neste’s strategic targets and to retain its key employees.

The award for the Neste Leadership Team members may vary between 0–120% of annual fixed salary, based on performance and share price appreciation. 

Other remuneration elements

Pension

For those who have started before 1 January 2009: a defined benefit (DB) plan based on a retirement age of 60 (up to 60% of retirement salary). Retirement salary for DB schemes is calculated based on the average monthly salary and related statutory pension insurance contributions over the ten years prior to retirement. For those who have started after 1 January 2009 but before 31 August 2018, a defined contribution (DC) pension scheme (based on retirement age of 62, 63 or as prescribed under Finnish pension legislation). DC pension allocation is 16% of annual fixed base salary. 

New additional pension schemes are no longer made for those who have started after 31 August 2018 unless the local pension system or strong market practice locally requires so.

Other benefits

The Neste Leadership Team members have company car benefit or car allowance depending on the location, mobile phone benefit in Finland, private accident-, life- and disability insurance, business travel, directors’ and officers’ liability insurances. The Neste Leadership Team members may participate in the sickness fund (in Finland).

Service contracts and loss of office payments

Neste Leadership Team members are entitled for 6 months’ severance payments. Change of control terms are the same as for termination.

Remuneration in 2023