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Remuneration of personnel

Short-term Incentives

Neste wants to ensure that its employees have the opportunity to share in the Company’s success and excellent performance. STI schemes are in place in all countries, and incentives are paid on the basis of the set goals. For the 2018 performance year, Neste was able to fund a payout of EUR 37.4 million (EUR 27.8 million) in performance-based incentives for senior managers and employees in the spring of 2019 (including pension and social insurance contributions). The Company’s main short-term incentive system for the personnel is determined according to the job grade and posting country, and is 4–20% of the annual base salary at a target level. The final incentive is determined by the Company’s result multiplier which, depending on the Company’s comparable operating profit, ranges between 0 and 1.5 if the threshold value has been exceeded. As a result, the incentive is determined according to the Company’s financial performance.

Personnel fund

Neste offers permanent and fixed-term employees based in Finland an entitlement to a profit share award through its personnel fund after six months of continuous service. The profit share earnings paid into the fund are distributed equally between members. The employees who participate in LTI plans are not entitled to profit share awards during the earning period of the plan. The Board of Directors sets the earning criteria for the profit share award annually and the award is tied to Neste’s comparable operating profit. In 2019, the Company’s personnel fund contribution was EUR 5.5 million (EUR 3.7 million) based on the comparable operating profit result achieved in 2018.