Remuneration of the President and CEO

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 President and CEO. 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.

Base salary and fringe benefits

President and CEO Heikki Malinen’s fixed salary is 100,020 EUR per month, including taxable benefits (car and mobile phone benefit). In addition, President and CEO is entitled to vacation pay according to the Finnish Annual Holidays Act.

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 President and CEO is 120% of annual base salary in 2024. The short-term incentive is based on Renewable Products EBITDA comparable, Oil Products EBITDA comparable, Group Free Cash Flow, Group Comparable ROACE and Group safety measures TRIF and PSER.

Potential reward payment is in March 2025.

Long-term incentives

Long-term incentive plans drive long-term sustainable growth and align the interests of the President and CEO with shareholders.

Performance Share Plan (PSP)

The incentive level for the President and CEO may vary between 0–200 % of annual fixed salary, based on performance and share price appreciation. 

PSP 2023-2025

The share allocation is 29,097 shares. Performance measures are Relative Total Shareholder Return 2023–2025 (TSR, weight 80%) versus the STOXX Europe 600 index and Combined Greenhouse Gas Impact 2023–2025 (GHG, weight 20%) measured cumulatively in CO2 equivalent. The shares will vest in March 2026 and there is no holding period.

PSP 2024-2026

The share allocation is 54,038 shares. Performance measures are Relative Total Shareholder Return 2024–2026 (TSR, weight 80%) versus the STOXX Europe 600 index and Combined Greenhouse Gas Impact 2024–2026 (GHG, weight 20%) measured cumulatively in CO2 equivalent. The shares will vest in March 2027 and there is no holding period.

Restricted share plan (RSP)

The President and CEO is entitled to restricted shares in a gross amount of 1,250,000 EUR in accordance with the respective RSP plans. The share delivery will happen in October 2025.

Other remuneration elements

Pension

In addition to Finnish statutory pension, the President and CEO is entitled to a supplementary defined contribution pension plan (DC) which commences at the age of 66. The supplementary pension contribution is 20% of annual fixed salary.

Other benefits

The President and CEO has the company car benefit, mobile phone benefit, private accident-, life- and disability insurance, business travel, directors’ and officers’ liability insurances. The President and CEO may participate in the sickness fund in Finland.

Share ownership guidelines

The President and CEO must accumulate and maintain a shareholding which is equivalent to the annual fixed salary. Until this threshold is met, participants must retain 50% of vested incentive shares after tax.

Service contracts and loss of office payments

Both parties have a six-month period of notice. Should the Company terminate the President and CEO’s agreement, the Company is required to pay six month’s salary and a separate severance pay equivalent to six month’s salary.