Sustainable remuneration

At Sampo Group, the guidance principles regarding remuneration and general conditions of work are the Sampo Group Remuneration Principles and the Sampo Group Code of Conduct, respectively. The Remuneration Principles describe the remuneration structure and the principles for setting up remuneration systems at Sampo Group. The Code of Conduct highlights how, at Sampo Group, discriminatory practices regarding remuneration are not tolerated, and the Group is committed to fair remuneration. In addition, each Group company has adopted supplementary policies for their own purposes.

The different forms of remuneration used are fixed and variable compensation, as well as pensions and other benefits. Fixed compensation is the basis of every employee’s remuneration package. Variable compensation is used to ensure the competitiveness of the total remuneration package and can be either short-term (short-term incentives, STI) or long-term (long-term incentives, LTI).

At Sampo Group, remuneration depends on objective criteria, such as work experience, competence, position, and responsibilities. Pay and additional benefits are not based on or affected by gender or any other non-professional aspect. Sampo Group has, for example, job title and job position structures to ensure that employees in the same position are employed under the same conditions, and internal and external benchmarks are used in setting the salary ranges. To ensure fair and objective remuneration for employees, all decisions concerning individual remuneration made by a leader must also be approved by the leader’s leader (grandparent principle).

Sampo Group mainly uses external remuneration consultants for remuneration benchmarking purposes, and remuneration consultants are always independent of the organisation, its governing bodies, and senior executives. The Board of Directors of the respective Group company oversees the remuneration area and related policies and processes. In major Group companies, a remuneration committee has been appointed to support the Board.

Integration of ESG into STI

At Sampo Group, most employees, including all senior executives, who participate in STI programmes have ESG criteria linked to their variable compensation, thereby supporting the sustainable development of the business. Both quantitative and qualitative criteria are used for assessing performance. Customer satisfaction metrics are widely used for all employees, and employee satisfaction is often included in the annual goals of leaders and senior executives. In addition, individual Group companies’ result criteria can be linked to their strategic sustainability initiatives, which derive from their sustainability programmes (or similar).

The ESG criteria of the STIs are updated every year as part of the annual planning process. In general, to be eligible for payment from a variable compensation programme, participants must also have acted in compliance with internal and external rules for the business.

ESG criteria have also been integrated into the Group CEO and the Group Executive Committee members’ STI programmes. Board members are independent of the companies and do not participate in variable compensation programmes.

Integration of ESG into LTI

ESG criteria is included in Sampo Group’s latest LTI programmes. Further information on the details is available in the Remuneration section of the website.internal link

Equal pay analysis

The Group companies conduct annual equal pay analyses in accordance with local legislation and their company-specific needs. The purpose of these analyses is to identify, handle and prevent unwarranted pay differences that may be derived from gender.