Remuneration in Elo's organisation 

The annual remuneration of the members of Elo’s Supervisory Board is EUR 7,000 for the chairperson and EUR 4,000 for the deputy chairpersons. All members are paid a meeting fee of EUR 800 per meeting. No loans or guarantees have been granted to the members of the Supervisory Board. The Remuneration Report contains member-specific information on the remuneration paid out in the previous year. 

The meeting fees of the Election Committee are EUR 600 for the chairperson and EUR 445 for the members per meeting. No loans or guarantees have been given to the members of the Election Committee. 

In addition, a daily allowance and travel expenses are paid for the meetings of the Supervisory Board and the Election Committee in accordance with the decision of the Finnish tax administration.

In 2025, the annual remuneration of Elo’s Board members are EUR 38,500 for the chairperson, EUR 22,000 for the deputy chairpersons and EUR 13,700 for the ordinary members. The meeting fee is EUR 950 for the chairperson of the Board, EUR 900 for the deputy chairpersons and EUR 750 for the members per meeting. No loans or guarantees have been granted to the members of the Board of Directors. The remuneration report contains member-specific information on the remuneration paid to the members of the Board of Directors in the previous year.

The chairperson of the Board’s Nomination and Remuneration Committee is paid EUR 950 per meeting and the members EUR 650 per meeting.

The annual remuneration of the chairperson of the Board’s Audit Committee is EUR 15,000, while the meeting fee is EUR 950 per meeting. The meeting fee for the members of the Board’s Audit Committee is EUR 800 per meeting. 

CEO Carl Pettersson’s salary consists of a base salary, fringe benefits and a performance bonus. In 2025, the CEO’s total monthly salary is EUR 31,502.10, of which the base salary accounts for EUR 31,301.10, and the total value of fringe benefits is EUR 200.60 per month. The taxable value of the fringe benefits is included in the total monthly salary. The CEO is entitled to fringe and employee benefits according to the same principles as other employees. Employee and fringe benefits granted by the company are reviewed annually by the Nomination and Remuneration Committee.

A specific retirement age has not been agreed with the CEO, but he will retire when he meets the target retirement age in accordance with the Employees Pensions Act. The period of notice for the CEO is six months if the company gives notice and six months if the CEO resigns. The salary will be paid normally for the period of notice. In addition, the CEO is entitled to a severance pay of six months’ total salary in certain specific situations only.

The performance bonuses payable to the CEO and the Deputy CEO are based on achieving Elo’s strategic targets and the specific targets for the CEO. The CEO has been set strategic goals for the company's growth, solvency, performance, responsibility and personnel.

The CEO's performance bonus scheme consists of short-term and long-term incentive schemes. In total, the potential performance bonus equals 12 months' salary. The Board of Directors wants to promote the creation of long-term conditions for success and good solvency development with an emphasis on the long-term targets. The maximum potential pay from the short-term incentive scheme is equal to eight months' salary, and the maximum potential pay from the long-term incentive scheme is equal to four months' salary. An annual payout is considered substantial if it exceeds EUR 50,000 or the beneficiary’s imputed monthly salary for two months at the time of payment if the salary exceeds EUR 50,000. 50% of a substantial payout will be paid during the year following the end of the year of vesting and the remaining 50% in equal instalments over the next three years.

In 2025, Elo’s Executive Group consists of the CEO and nine Executive Group Directors as well as an employee representative.

Elo’s Board of Directors decides on the salaries, performance bonuses and other benefits of the directors appointed by the Board of Directors. The members of the Executive Group are entitled to fringe and employee benefits according to the same principles as other employees. The taxable value of the fringe benefits is included in the total monthly salary.

In the management’s performance bonus scheme, company- and process-specific targets and indicators derived from the company's strategic objectives have been set for each director both for the long and short term. Performance bonuses take into account the risks involved in achieving the result. The goal components have been given weightings for each director, reflecting the goals’ order of priority. Depending on the area of responsibility, the maximum amount of the bonus varies from 6 to 12 months' salary. As the director of an independent function, the Chief Risk Officer is excluded from the performance bonus system. An annual payout is considered substantial if it exceeds EUR 50,000 or the beneficiary’s imputed monthly salary for two months at the time of payment if the salary exceeds EUR 50,000. 50% of a substantial payout will be paid during the year following the end of the year of vesting and the remaining 50% in equal instalments over the next three years.

Based on the proposal of the Nomination and Remuneration Committee, the Board of Directors approves annually the objectives and actuals for the performance-based bonus system for the directors in the Executive Group.

Elo does not have any supplementary pension arrangements, and no specific retirement age has been agreed for the members of the Executive Group. The retirement age is determined in accordance with the Employees Pensions Act. Some of the Executive Group members have a contribution-based collective employee group pension insurance transferred from a previous employment relationship with Elo’s predecessor company, which accrues 0.2% of pension annually and, in addition, two other supplementary pension insurance policies transferred from another predecessor company. In 2025, the cost of the supplementary pension insurance policies will be EUR 43,550.

The period of notice for a director is six months if the company gives notice and three months if the director resigns. The salary will be paid normally for the period of notice. In 2024, a total of EUR 488,196.10 of performance bonus was paid to the directors in the Executive Group for 2023 (EUR 315,486.72 for the short-term scheme and EUR 172,709.38 for the long-term scheme). For the years 2020–2022, a total of EUR 55,326.99 was paid in deferred instalments.