Many of Finland’s state-backed firms have slashed bonuses for top executives, according a fresh survey via the Helsinki-based Helsingin Sanomat news agency.
Officials from the paper sought the responses of management from three-dozen of the country’s top majority state-owned companies; their responses revealed that about half have recently reduced bonus packages for chief executives and other top officials.
The results follow the August implementation of the Finnish government’s new regulations for the remuneration of executives.
Six of the firms questioned said they were amid plans to cut bonuses, whilst 12 said they had already done so. Meanwhile, 15 companies said they were not planning to make any changes in accordance with the new rules.
Despite the news, experts say that many top executives will still see larger annual income levels, as the rules do not bar yearly pay rises.
Among specific CEs, Mikael Aron, the head of the country’s VR state railway firm, saw his bonus cut from 120 percent to just half of his annual salary. Meanwhile, Hille Korhonen, the top official for the government’s alcohol retailer Alko, saw her bonus cut from 32 to 15 percent of her annual salary, although she is likely to see a higher total income figure amid the firm’s growth.