Year 2017

 

 

 

 

5. Employee benefits

 

EUR million

2017

2016

2015

Wages and salaries

564.3

584.8

606.9

Pensions (defined contribution plans)

93.6

95.9

98.4

Pensions (defined benefit plans)

0.1

0.3

0.4

Other social expenses

38.5

49.8

50.9

Total

696.6

730.8

756.5

       

Employee benefits

More detailed information on defined benefit pension plans can be found in note 18.

       

Employee benefit expense includes EUR 5.0 million (2016: 18.9, 2015: 8.5) of personnel restructuring costs relating primarily to restructuring carried out in conjunction with the operational transformation and the Group's various profitability improvement programs.

       

Group’s employees are involved in the Group’s profit sharing scheme. In Finland, the annual profit bonuses are paid in cash to the Personnel Fund, the aim of which is to increase the employees' commitment to the long-term targets and to enhance interest in the Group’s financial success. The profit share is determined on the basis of Group’s result. The proposed profit share to be distributed for 2017 is EUR 0.6 million (2016: 1.6, 2015: 0.0).

       

The Group’s experts and managers are involved in the cash-settled performance-based bonus scheme. The bonus is based on the Group's, the unit's and the team's financial indicators and on personal or team-specific performance indicators. Posti confirms annually the threshold values for these indicators.

       

Decisions concerning long-term incentive schemes are made by the Board of Directors on the recommendation of the Remuneration and Nomination Committee. Long-term incentive schemes are rolling 3-year programs, which are settled in cash. The schemes include the Executive Board as well as key employees per scheme named by the Board of Directors. The schemes have been implemented in accordance with the guidelines by the state-owner concerning the remuneration of executive management, issued on August 13, 2012.

       

For key management compensation, see note 24.