Notes to the consolidated financial statements (IFRS)

7. MANAGEMENT REMUNERATION IN 2014
 
Total Management remuneration, EUR 2014 2013
Compensation to the Board of Directors 490 300 445 500
Salaries 3 078 608 3 400 741
Benefits 138 439 183 226
Special payments 500 000 24 854
Severance payments 496 364 569 940
Bonus 728 037 0
Share-based payment costs 1 132 072 686 785
Statutory pension costs 447 697 616 940
Additional pension costs 784 834 1 109 120
Total   7 796 350 7 037 106
 
Board of Directors
According to the decision by the AGM executives are compensated in cash and shares. Chairman EUR 72 000/year , Deputy Chairman EUR 48 000/year, member EUR 31 500/year, Committee Chairman EUR 48 000/year and EUR 800 for each board meeting.
Total compensation to the Board of Directors 490 300 445 500
Chairman of the Board 96 800 88 800
Deputy Chairman 71 200 64 800
Members 322 300 291 900
       
President and CEO
Salary EUR 537 500 (2013: EUR 500 000)
Benefits EUR 3 455 (2013: EUR 12 535)
Special payments EUR 500 000
The Board of Directors has decided on an additional success-based incentive for the President and CEO. The targets were based on the company’s strategic and financial objectives, which were to be reached by the end of 2014. Based on criteria attainment 10 688 Tieto Corporation shares were delivered to the CEO in January 2015. In addition, a cash payment was made to cover taxes and tax related costs at reward payment. The gross value of the reward was 500 000 euros. The delivered shares are under transfer restriction for one year.
(2013: EUR 0)
Bonus EUR 163 845 (estimate, not decided yet) (2013: EUR 0)
Bonus principles Maximum 60 % of base salary based on Group's external revenue and profit when achievements exceed the targets.  
Options and warrants 2009 C option program: right to subscribe 30 000 shares The fair value of these warrants amounts to EUR 330 000 2)
Long-Term Incentive
Programme 2012-2014
The reward to be paid at target corresponds to 50% annual gross salary and at maximum 120% annual gross salary.

In spring 2013 a total of 4 006 shares were transferred as a reward from Performance Period 2012 to the President and CEO. The shares are under transfer restriction according to the terms of the programme.

No shares were delivered from Performance Period 2013.
The fair value of these allocations amounts to EUR 581 250 3)
Share-based reward plan Entitled to a total of 9 200 shares if the criteria set for the plan are met. The plan will run until the end of 2016 The fair value of these allocations amounts to EUR 197 892 4)
Share-based
payment costs
EUR 328 868 (2013: EUR 223 121)
Retirement age 63  
Statutory pension costs EUR 93 901 (2013: EUR 87 541)
Additional pension costs EUR 123 625 (2013: EUR 115 203)
Pension level Annual fee (in addition to statutory pension provision): 23% of the annual base salary (defined contribution plan)  
Period of notice 12 months  
Severance payment Equivalent to 12–18 months' salary.  
       
Leadership Team
Excluding President and CEO
Salaries EUR 2 541 108 (2013: EUR 2 900 741)
Benefits EUR 134 983 (2013: EUR 170 691)
Special payments EUR 496 364 (including severance payments of EUR 496 364) 5) (2013: EUR 594 795 including severance payment of EUR 569 940)
Total bonuses EUR 564 192 (estimate, not decided yet) (2013: EUR 0)
Bonus principles The basis of bonus as well as target and maximum amounts for bonuses vary between the Leadership Team members.    
Options and warrants 2009 B option program: right to subscribe 10 000 shares The fair value of these warrants amounts to EUR 76 200 1)
  2009 C option program: right to subscribe 61 000 shares The fair value of these warrants amounts to EUR 671 000 2)
Long Term Incentive
programme 2012 - 2014
The reward to be paid to other members of the Leadership Team on the basis of the Long-Term Incentive Programme 2012–2014 at target corresponds to 30–40% of the annual gross salary and at maximum 60–80% of the annual gross salary.

The rewards from Performance Period 2012 were paid in spring 2013 and in spring 2014. A total 8 057 are in the possession of current LT members (excl. CEO) and under transfer restriction according to the terms of the programme.

No shares were delivered from Performance Period 2013
The fair value of these allocations amounts to EUR 1 069 006 3)
Share-based reward plan Leadership Team members are entitled to a total of 26 300 shares if the criteria set for the plan is met. The plan will run until the end of 2016. The fair value of these allocations amounts to EUR 565 713 4)
Share-based
payment costs
EUR 803 204 (2013: EUR 463 664)
Retirement age According to national standards    
Statutory pension costs EUR 353 795 (2013: EUR 529 399)  
Additional pension costs EUR 661 208 (2013: EUR 993 917)  
Pension level Annual fee (in addition to statutory pension provision): 15% and 23% (for one executive member) of annual base salary (Defined contribution and defined benefit arrangements)    
Period of notice Varies between 6 and 12 months    
Severance payment Various terms, amounts corresponding to the periods of notice    
       
There were no loans to executive management on 31 December 2013 nor on 31 December 2014.
There are no guarantees on behalf of key management