Sampo Group's remuneration strategy is responsible towards employees and shareholders. This means that the long-term financial stability and value creation of Sampo Group guide the remuneration design.
The starting point of any remuneration mechanism is to encourage and stimulate employees to do their best and surpass their targets. However, remuneration mechanisms shall not generate conflicts of interest and shall not entice or encourage employees to excessive or unwanted risk-taking. Risk sensitive but fair and rewarding remuneration mechanisms enhance Sampo Group's ability to create stakeholder and shareholder value.
The Board of Directors has established the Sampo Group Remuneration Principles, which apply to all Sampo Group companies. The Remuneration Principles are part of Sampo Group's internal governance framework and describe the remuneration structure and the principles for setting up remuneration systems in Sampo Group. The Remuneration Principles may apply to the Group CEO, insofar as they do not conflict with Sampo plc’s Remuneration Policy for Governing Bodies.
The core of the Remuneration Principles is that all remuneration systems in Sampo Group shall safeguard the long-term financial stability and value creation of Sampo Group and shall comply with regulatory and ethical standards. They shall also be aligned with the risk management framework and thus be designed in parallel with the risk management principles and practices.
Remuneration mechanisms shall encourage and stimulate employees to do their best and surpass their targets. Remuneration packages shall be designed to reward fairly for prudent and successful performance. At the same time, however, in order to safeguard the interest of other stakeholders, remuneration mechanisms shall not generate conflicts of interest and shall not entice or encourage employees to excessive or unwanted risk-taking.
Remuneration Policy for Governing Bodies
Sampo plc's Remuneration Policy for Governing Bodies is a part of Sampo's internal governance structure and is presented to Sampo´s general meeting at least every four years. The remuneration Policy defines how the remuneration of Sampo’s Group CEO (“Group CEO”), the Group CEO’s possible deputy and the members of the company’s Board of Directors has been arranged.
Sampo plc’s Remuneration Policy for Governing Bodies was presented to the Annual General Meeting on 2 June 2020. Out of all given votes, 90.34 per cent were given in favor of the presented Remuneration Policy. The Annual General Meeting resolved, in accordance with the voting result, to accept the presented Remuneration policy. The resolution was advisory.
Remuneration Report for Governing Bodies
Sampo plc’s Remuneration Report for Governing Bodies provides information on the remuneration of the Board of Directors and the Group CEO, and it also describes how the Remuneration Policy for Governing Bodies has been applied in practice.
The Remuneration Report for Governing Bodies 2022 has been prepared in accordance with the section titled "Remuneration reporting" of the Corporate Governance (CG) Code 2020.
The former Chair of the Nomination and Remuneration Committee, Björn Wahlroos, addresses Sampo’s shareholders on matters related to the Remuneration Report. The Chair’s letter is not a part of the Remuneration Report.