Compensation


Board Fees and other Benefits as of February 9, 2010

The Annual General Meeting decides annually on the Board of Directors' fees and on the criteria for reimbursement of Board expenses.

In accordance with the decision of the Annual General Meeting of February 9, 2010 the fees paid to the members of the Board of Directors remain unchanged. The Chairman of the Board of Directors will receive a fee of EUR 3,500 per month for his Board work and an attendance fee of EUR 1,000 per Board meeting, the Vice Chairman will receive EUR 1,750 per month and EUR 500 per meeting and all other Board members EUR 1,750 per month and EUR 500 per meeting. In addition, Board members are reimbursed for travel expenses in accordance with the Finnish Tax Administration's approved maximum limits for travel compensation in each case.

An attendance fee of EUR 500 per meeting is paid to committee chairmen and members for their work on the committees.

Board Fees and other Benefits for Fiscal Year 2009

Board of Directors compensation/term, eurFiscal year 2009
Chairman3.500
Deputy Chairman1.750
Board members1.750
Attendance money/meeting, eur
Chairman of the Board1.000
Deputy Chairman   500
Board members   500
Work on the committees   500

In addition, Board members were reimbursed for travel expenses in accordance with the Finnish Tax Administration's approved maximum limits for travel compensation in each case.

The Chairman of the Board of Directors and the members of the Board were paid as follows:

Isto Hantila: EUR 55,000
Timo Syrjälä: EUR 27,000
Matti Tammivuori: EUR 27,000
Matti Vikkula: EUR 20,000
Ari Siponmaa: EUR 20,000
Marko Luoma: EUR 26,000

The board members were not awarded options or company shares as compensation for their Board work.

President and CEO's Service Contract

The salary, benefits and other terms of service of the President and CEO are defined in a written service contract. Under the contract, the President and CEO is entitled to an annual performance-related bonus payment, as defined by the Board of Directors. The Board of Directors decides each fiscal year on the targets used as the basis for the remuneration. The Board of Directors decides on the granting of stock options to the President and CEO.

The President and CEO does not have a voluntary pension insurance policy. His contract does not contain provisions on any specific age limit for early old-age pension or for resignation. The period of notice for the President and CEO is six months and, under the contract, he will not receive any separate discharge fee.

The Fees and other Benefits of President and CEOs' During Fiscal Year 2009

President and CEO Reijo Mäihäniemi received a total of EUR 210,146.74  in salary and fringe benefits during the fiscal year ended October 31, 2009; ouf of which bonuses 30,000 and the regular monetary salary accounted for EUR 179,906.74  and the fringe benefits for EUR 240. During the last fiscal year the Board of Directors did not grant any stock options to Mr. Mäihäniemi under the 2005 Stock option Plan. The President and CEO holds 220,000 stock options.

Efore does not operate an incentive system under which fees are paid to the President and CEO in the form of the company’s own shares.

Remuneration System for the President and CEO and the Company's other Executive Management

Efore Plc’s Board of Directors approves the performance-related pay system for the executive management of the company. The maximum performance-related compensation approved by the Board is set at 10-30% of the yearly earnings, depending on the employee’s position. The criteria used for assessing the performance are the Group’s performance requirements and those applying to the person’s own sphere of responsibility, and other measures of operational activity. The management performance related pay system covers approximately 70 employees.

Auditors’ Fees for Fiscal Year 2009

During the last fiscal year the auditors’ received EUR 51,400 in audit fees and EUR 43,200 for other services.

 Updated February 11, 2010