Within OP Financial Group, financial remuneration consists of fixed and variable remuneration. Variable remuneration comprises a performance-based bonus, spot bonus, retention bonus, guaranteed variable remuneration and the personnel fund.
In its remuneration, OP Financial Group complies with provisions based on EU and national laws and guidelines issued by the European Central Bank, the Finnish Financial Supervisory Authority and other regulators. OP Financial Group's remuneration policies are based on laws, provisions and recommendations applicable to the financial sector and on the Finnish Corporate Governance Code to the extent applicable to cooperative financial group entities.
OP Financial Group's variable remuneration is consistent with sound and effective risk management and doesn’t encourage to take excessive risks or to act against the customer’s best interests. The remuneration schemes are in line with the values, goals and targets, and the business strategy. Qualitative and quantitative factors are included in variable remuneration indicators.
OP Financial Groups remuneration principles are prepared by OP Cooperative's Board of Directors with the help of the Remuneration Committee, and confirmed by OP Cooperative's Supervisory Council. Group-level decision-making, monitoring and supervision of remuneration systems takes place within OP Cooperative’s Board of Directors, prepared by the Board Remuneration Committee. Within the OP cooperative banks, remuneration-related decisions are ultimately made by each bank’s board of directors, within the framework of Group-level instructions.
Compliance and Internal Audit annually evaluate the remuneration schemes, including compliance with their terms and conditions and the remuneration schemes' regulatory compliance, and report their observations to OP Cooperative’s Board of Directors and its committees.
OP Financial Group’s Remuneration Policy for Governing Bodies and Remuneration Report for Governing Bodies 2023 include more detailed descriptions of remuneration principles, pay policy, decision-making related to remuneration, variable remuneration schemes and the remuneration paid to members of governing bodies and Group Executive Management in 2023.
Remuneration paid under the remuneration schemes is described in Note 13 Personnel costs of OP Financial Group’s Report by the Board of Directors and Financial Statements.