Ilmarinen, one of Finland’s biggest pension funds, said that how companies on its home turf pay their top staff was one of its focus areas in this year’s shareholder meeting season, and welcomed increased transparency on the issue following new rules.
The €60.5bn mutual pensions insurance company said it had taken part in 109 domestic annual general meetings (AGMs) this spring.
Karoliina Lindroos, director of Ilmarinen’s responsible investing, said: “We’re often in contact with the companies about the items on the agenda even before the meeting, and we have a discussion with the companies about our expectations.
“As in previous years, the contacts this year were especially related to reward reports and reward policies,” she said in news on the pensions giant’s website yesterday.
Ilmarinen said it was a good development that companies’ remuneration policies and reports now had to be discussed at the AGM, as it increased the transparency of management remuneration for shareholders.
“It’s important for us that the remuneration report specifies at least the metrics used in the remuneration and their weights,” Lindroos said.
“The hallmarks of a good reward system are clarity, long-term commitment, and the fact that the system only rewards deserved success and takes responsibility aspects into account appropriately,” she said.
The requirement for remuneration policies and reports to be presented at AGMs was introduced into the Corporate Governance Code for Finnish listed companies in 2020.
Read the digital edition of IPE’s latest magazine
No comments yet