FINLAND - State company executives are set to be moved into defined contribution schemes following guidance issued by the Finnish cabinet committee on economic policy.
The guidelines state any supplementary pensions for new scheme entrants must be based on a defined contribution model to form part of the total salary paid by the employer, rather than a specific level of the pension.
It also said that the top management retirement age must now be a minimum of 63 years, in line with the general minimum retirement age provisions.
A cabinet statement said future contracts of managing directors and executives must not include "exorbitant" pension benefits or the facility to retire before 63 - noting exceptions could only be approved in special cases, such as when a key employee is recruited to Finland from abroad.
It added that remuneration schemes must include a possibility for adjustment and recovery.
The guidelines also target the remuneration of executive management, which is considered as a whole, comprising both salary and the terms concerning pension and fringe benefits included in the contract.
It outlined details concerning remuneration, and said that basic salaries must be competitive, while additional benefits should be based on a measurable profitability and the executive's good performance on a long-term perspective.
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