Remuneration

Remuneration at Ruukki means fair, objective and competitive remuneration that motives excellent performance. Remuneration is based on job demands, performance and competence. At Ruukki, remuneration is based not just on material pay, but the traditional elements of intangible remuneration also play an important role. These elements include development and career opportunities, the working environment, good supervisory work, the balance between work and leisure and an interesting job.

Principle of fairness

Ruukki complies with the principle of fairness in remuneration, recruitment and employment contracts. No one is discriminated against on the grounds of gender, religion/beliefs, ethnical background, sexual orientation or any other personal factor not relating to work. The bases for remuneration are fair taking into account the job, performance and competence. Ruukki employs a job evaluation approach to calibrate the basis for remuneration.

Ruukki complies with valid minimum wage regulations and minimum pay agreements provided by collective agreements in all the countries it operates in. In 2011, 68 per cent (69) of Ruukki employees were covered by collective agreements. Ruukki also requires subcontractors to comply with the same regulations and agreements.

We pay bonuses for results

Employees can also earn bonuses when they achieve or exceed their personal targets. Performance bonuses are an important part of Ruukki’s strategic targets at the individual and team level. The same bonus principles apply to all Ruukki’s salaried and senior salaried employees. Performance bonuses depend on the targets set in conjunction with development discussions. The majority of workers are covered by locally defined bonus schemes.

Ruukki aims to offer competitive pay

Competitiveness means actively tracking the external pay market and taking it into account as one of the criteria for remuneration. By offering competitive pay, Ruukki seeks to ensure it is an attractive employer and ensure the motivation of its employees. Ruukki also seeks to be competitive as regards immaterial remuneration and strongly focuses on this by, among other things, supervisor training.

Remuneration of key persons

The same definitions apply to the remuneration of management as to others. Ruukki uses a share-based incentive plan valid for 2011-2013 in management remuneration. The plan consists of three one-year earning periods and one three-year earning period. Performance targets are based on return on capital employed (ROCE), consolidated net sales growth and the achievement of strategic targets. Around 100 persons are covered by the plan. Key persons who do not belong to the share-based incentive plan belong to the company’s profit sharing scheme.

Personnel costs

€m	2011	2010	2009
Finland	360	351	323
Norway	21	25	29
Sweden	24	24	28
Russia	27	21	22
Poland	18	16	14
Hungary	7	6	8
Germany	3	4	4
Estonia	3	4	4
Romania	4	4	4
Other countries	22	18	19
Total	489	472	456