Compensation
The Board of Directors decides on the terms of employment and compensation of the CEO and other executives on the Sampo Group Executive Committee, on the basis of a proposal by the Nomination and Compensation Committee. However, the Nomination and Compensation Committee can decide, with the authorisation of the Board of Directors, on the salaries of the members of the Group Executive Committee, excluding the Group CEO and his deputy.
Salaries and profit bonuses paid to the CEO (Online Annual Report 2009)
Profit Bonus System
In addition to receiving monthly salaries, executives who are members of the Group Executive Committee are participants in Group's profit bonus system, which is decided upon by the Board of Directors separately each year. The criteria used in determining the profit bonus are the Group's result, the business area's result and the individual performance of the person in question.
The maximum profit bonus that can be paid for 2010 to executives who are members of the Group Executive Committee corresponds to 9 months' salary.
The Group CEO participates in Group's profit bonus system, which is decided upon by Sampo plc's Board of Directors separately each year. Currently the bonus paid corresponds to 0-9 months' salary.
Long-term Incentive Systems
There are two types of management incentive schemes in Sampo Group; long-term management incentive schemes and a share-based incentive scheme. The members of the Group Executive Committee and other key persons participate in the long-term management incentive systems. The members of the Group Executive Committee also participate in the long-term share incentive system for Sampo Group's key management.
Terms and Conditions of the Long-term Incentive Systems for Sampo's Management
| Scheme | Allocated incentive units (pcs) | of which to | of which to Group CEO* | Starting price (EUR) | Dividend | Theoretical market value (EURm)** | Persons | Terms |
| 2008 I | 1,361,587 | 478,975 | 91,000 | 17.26 | 14.26 | 4.2 | 97 | Terms |
| 2008 II | 63,000 | - | - | 18.44 | 16.64 | 0.1 | 3 | Terms |
| 2009 I | 4,392,000 | 1,555,000 | 400,000 | 16.49 | 15.49 | 14.6 | 114 | Terms |
* Figures represent the unused part of the allocation.
** Calculation based on Black & Scholes model. Insurance margin criteria assumed to be fullfilled 100 per cent.
Terms of the Share-based Incentive System for Sampo plc's Management in 2006
On 05/11/2006 Sampo plc's Board of Directors decided on the persons to be included in the share-based incentive system and the allocation of the shares. The Board also confirmed the performance criteria.
| Scheme | Maximum | Allocated (pcs) | of which to Group CEO* | Persons | Terms |
| 2006 | 1,500,000 | 1,000,000 | 50,000 | 10 | Terms |
* Figures represent the unused part of the allocation.
Option Schemes
Sampo plc has no option programs in place.