Annual Report 2015

7. Employee benefits

 

EUR million

2015

2014

Wages and salaries

606.9

684.7

Pensions (defined contribution plans)

98.4

103.3

Pensions (defined benefit plans)

0.4

0.6

Other social expenses

50.9

59.3

Total

756.5

847.8

     

Employee benefits

     

More detailed information on defined benefit pension plans can be found in Note 28.

Employee benefit expense includes EUR 8.4 (25.8) million of personnel restructuring costs.

     

Group’s employees are involved in the Group’s profit sharing scheme. In Finland, the annual profit bonuses are transferred to the Personnel Fund, the aim of which is to increase the employees' commitment to the long-term targets and to enhance interest in the Group’s financial success. The profit share is determined on the basis of Group’s result. The proposed profit share to be distributed for 2015 is EUR 0.0 (1.0) million.

     

The Group’s experts and managers are involved in the performance-based bonus scheme. The bonus is based on the Group's, the unit's and the team's financial indicators and on personal or team-specific performance indicators. Posti confirms annually the threshold values for these indicators.

     

Decisions concerning long-term incentive schemes are made by the Board of Directors on the recommendation of the Remuneration and Nomination Committee. Long-term incentive schemes are rolling 3-year programs. The schemes include the Executive Board as well as key employees per scheme named by the Board of Directors. The schemes have been implemented in accordance with the guidelines by the state-owner concerning the remuneration of executive management, issued on 13 August 2012.