The EU’s Second Shareholder Rights Directive has been implemented in Finnish national legislation as of June 2019. In 2020, all listed companies had to publish a remuneration policy and this year the first remuneration reports had to be presented at the Annual General Meeting for approval. In line with this, Glaston published its first remuneration report in March 2021 covering the remuneration of the Board of Directors, the President and CEO and the Deputy CEO for the financial year 2020. The purpose of the remuneration report is to describe the implementation of Glaston’s remuneration policy in a clear and comprehensible manner.
Best reports selected
As the first ever remuneration reports in its current format were published in spring, the Board Professionals Association, global organizational consulting firm Korn Ferry, Nasdaq and Varma Mutual Pension Insurance Company set out to select the best reports for listed companies in Finland with the aim to promote good practices in remuneration reporting, and to reward the highest quality remuneration reports.
Winners were selected in three categories: large cap companies, mid cap companies and small cap companies. According to the organizers, the quality of the reports varied widely in each category. However, the top level in each category was good. As the winner for the small cap series, Glaston’s report was considered to clearly and understandably present the key issues. Positive feedback was also received for the introduction, lay-out and format.
The winner in series for mid cap companies was Caverion and for large cap companies Fortum.