The Annual General Meeting confirms the remuneration of Board members annually. The Board of Directors confirms the CEO's salaries and other benefits. The Company's Board of Directors decides on incentive bonuses for the company's President and CEO. Members of the Board of Directors are remunerated only on the basis of Board membership and committee work.
Annual remuneration is paid to the members of the Board of Directors. In addition to that, separate meeting remuneration is paid and travel expenses are compensated. The Board of Directors has a bonus system, and the terms of said system is decided each year in the Annual General meeting.
The Board of Directors do not enjoy any other benefits. Part of the yearly bonus remunerations can be paid via shares according to the decisions made in the AGM. Payments by shares are always released separately.
The AGM of 2016 confirmed that
- the annual remuneration of EUR 10,000 for the members of the Board of the Directors, EUR 12,500 for the Chairman of the Board, and an attendance remuneration of EUR 600 per each meeting for the Board and the Committees, and that the members of the Board are compensated for their travel expenses.
- circa 40% of the annual remunerations will be paid with the shares of the company. Transfer to the shares is made by using the average share price of Neo Industrial Plc's B-share in May 2016 and the shares will be handed over in June 2017.
- the members of the Board will be paid a bonus based on the development of the company's B-share price, the amount of which is EUR 1,000 for the chairman of the Board and EUR 500 for the members of the Board, multiplied by annual return based on the share price development of Neo Industrial Plc's class B share (average share price in May 2017 - average share price in May 2016). Should the annual return exceed 50%, the bonus shall be paid in accordance with 50%.
- circa 40% of the bonuses will be paid with the shares of the company. Transfer to the shares is made by using the average share price of Neo Industrial Plc's B-share in May 201 snf the shares will be handed over in June 2017.
The Management does not have any bonus system in Neo Industrial The Managing Director acts also as Managing Director of Reka Cables Ltd and is included in it's bonus system.
For the time being, the company has no share-based or equity-rewarded remuneration schemes.