Neste CEO Heikki Malinen. The state opposes the proposed compensation for Neste’s CEO as excessive. LEHTIKUVA
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The Finnish government has voted against the proposed remuneration package for Heikki Malinen, CEO of state-backed energy company Neste, calling it excessive and inconsistent with state ownership policy. The final decision on the compensation lies with Neste’s board, but the state, which owns 44.2% of the company, has made its opposition clear ahead of the company’s annual general meeting on 25 March.
The disagreement centres on performance-based incentives and a supplementary pension. Malinen’s total compensation package could reach 320% of his base salary, exceeding the government’s preferred limit of 200% unless company targets are exceeded significantly. Additionally, Malinen is entitled to a supplementary pension, which the state generally opposes for executives in companies it owns.
Malinen’s base salary is €100,020 per month, or €1.2 million annually. On top of this, he is eligible for a short-term bonus of up to 120% of his salary and a long-term incentive of up to 200%, based on performance and share price. He will also receive a one-time stock bonus worth €1.25 million.
The government’s opposition comes at a time of financial difficulties for Neste. The company reported a loss of €110 million in the last quarter of 2024 and has announced plans to cut 600 jobs. Its share price has fallen by over 65% in the past year and by more than 85% over the last four years.
Despite this, Neste’s board argues that competitive compensation was necessary to attract a high-calibre leader. In a statement, Matti Kähkönen, chair of Neste’s board, defended the decision, citing Malinen’s experience in managing turnaround situations.
HT
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Source: www.helsinkitimes.fi
