Equitable and motivational remuneration
Neste Oil's remuneration aims to motivate personnel to perform at their best and encourage people with the skills and talent the company needs to join and stay with the company.
Neste Oil applies and observes the requirements of local employment legislation and collective bargaining agreements wherever it operates, which determine things such as minimum wages and supplements such as overtime pay.
90.4% (89.3%) of personnel came within the scope of collective bargaining agreements in 2011. Not all countries were covered by these types of agreements. Neste Oil’s senior executives do not come within the scope of collective bargaining agreements. They are covered by Neste Oil’s senior management remuneration principles.
Neste Oil will concentrate on developing its performance management process and related remuneration during 2012.
Basis of remuneration at Neste Oil
Neste Oil's employee remuneration consists of a number of different elements:
- their basic salary
- short-term incentives
- a comprehensive range of fringe benefits
- long-term incentives
- bonuses for excellent performance
- and intangible benefits.
All of Neste Oil’s personnel are covered by the company’s incentive systems. Neste Oil’s main short-term incentive is the annual bonus system. Employees at the Porvoo refinery had previously their own system but joined the Group's system in 2011. Neste Jacobs left the Group’s system and adopted its own customized scheme. The Personnel Fund represents Neste Oil’s main long-term incentive and covers the Group’s employees in Finland. Similar funds do not exist in other countries.
Under the Group-wide remuneration principles published in 2010, employee remuneration is based on people’s job responsibilities, their performance, and equality, regardless of gender or factors such as personnel category. These principles are applied wherever Neste Oil operates within the framework of local collective bargaining agreements and the national labor market and competitive environment.
Work started in 2011 on drawing up local remuneration guidelines for the various countries outside Finland in which Neste Oil operates and implementing these guidelines locally. This involved taking part in local assessments of job complexity and salary market studies. Drafting work and implementation will continue in 2012.