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Finnish minister could propose changes to Finnair board
October 23, 2017 / 9:23 AM / 2 months ago

Finnish minister could propose changes to Finnair board

HELSINKI, Oct 23 (Reuters) - Finnish economy minister Mika Lintila could propose changes to the board of state-controlled Finnair because of the CEO’s compensation package, he said in a video interview.

The airline’s board last year approved a supplementary pension arrangement for CEO Pekka Vauramo, counter to the state’s recommendations for companies in which it holds significant stakes.

“I will bring my own proposal for the annual general meeting regarding the composition of the board,” Lintila said in a video interview with Kauppalehti business daily on Saturday.

The government usually refrains from direct intervention in state-owned companies and the Finnair board is normally proposed by a four-member nomination panel on which the state has one representative. The state owns 55.8 percent of Finnair.

Vauramo was granted an annual supplementary pension of 20 percent of his fixed compensation, which equates to about 130,000 euros ($152,750).

Executive compensation is a sensitive subject in Finland, which just gone through a long period of economic stagnation and where the government has recently cut workers’ benefits. ($1 = 0.8511 euros)

Reporting by Jussi Rosendahl; Editing by David Goodman

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