Remuneration
Remuneration at Stora Enso
Stora Enso aims to provide a level of remuneration that motivates, encourages, attracts and retains employees of the highest calibre. To maximise the effectiveness of remuneration within Stora Enso, careful consideration is taken to ensure the remuneration elements drive the business strategy of the company and its long-term financial interests.
The Remuneration Policy describes Stora Enso’s main principles and the decision-making process of remuneration for the members of the Board, President and Chief Executive Officer (CEO) and Deputy CEO, and the remuneration elements for them.
Remuneration in the past year is described in detail in the Remuneration Report. It includes the main principles of Stora Enso’s remuneration for the members of the Board of Directors, President and CEO, and Deputy CEO, its remuneration decision-making procedure; a description of Stora Enso’s current policy and details of how remuneration arrangements were implemented during the year.
Remuneration of the Board of Directors
Remuneration of the Board is decided annually by the shareholders at the AGM or a possible extraordinary shareholders’ meeting. The remuneration of the members of the Board may depend on their respective roles as Chair, Vice Chair, and Members of the Board or its committees.
The AGM in 2026 approved the proposal by the Shareholders' Nomination Board on the annual remuneration for the Board of Directors as follows:
Chair: EUR 221,728 (2025: 221,728)
Vice Chair: EUR 125,186 (2025: 125,186)
Members: EUR 85,933 (2025: 85,933)
The AGM also approved the proposal that the annual remuneration for the members of the Board of Directors, be paid in Company shares and cash so that 40% will be paid in Stora Enso R shares and the rest in cash.
The AGM approved the annual remuneration for the Board committees as follows:
Financial and Audit Committee
Chair: EUR 23,976 (2025: 23,976)
Members: EUR 16,868 (2025: 16,868)
People and Culture Committee
Chair: EUR 11,988 (2025: 11,988)
Members: EUR 7,214 (2025: 7,214)
Sustainability and Ethics Committee
Chair: EUR 11,988 (2025: 11,988)
Members: EUR 7,214 (2025: 7,214)
More information about the remuneration of the Board of Directors is presented in the Remuneration Report.
President and CEO remuneration
The total compensation of the President and CEO generally includes base salary, benefits, and short and long term incentives paid during the evaluation period. The CEO is eligible to participate in the Finnish statutory pension system, and his/her retirement age is 65. Currently, the CEO does not have a supplementary pension plan.
During 2025, there were no recovery of paid or reduction of outstanding awards in respect of the President and CEO.
In connection with the appointment of the CEO, the Board deviated from the Remuneration Policy. The exemption is related to the performance periods for the CEO’s STI and LTI plans, which differ from the performance periods applied to the rest of the Group. Exemptions, such as the appointment of the CEO, have been duly listed as possible deviations from the Policy. As of 2026, the CEO’s STI programme will fully align with the standard annual STI cycle. The CEO’s LTI programme adheres to the Group’s standard LTI programme and its associated vesting periods as of LTI 2024 plan.
| Annual base salary | EUR 1,050,000 as of 1 October 2025 including fringe benefits. |
|---|---|
| Short-term incentive | As of 2026, the CEO’s STI programme will fully align with the standard annual STI cycle. For Q4/2025, the CEO’s STI performance metrics were the same as for the Group Leadership Team. |
| Long-term incentive | In 2025, LTI outcome was 60% or EUR 990,136. The CEO may earn a maximum of 169,420 gross shares from CEO PSP plan (target is 50% of the maximum) based on the achievement performance criteria set by the Board. The maximum opportunity represented 200% of annual base salary at the time of the share grant. The CEO PSP outcome was measured at the end of the third quarter in 2025, and the plan had a cliff vesting in one instalment. The final outcome of 60% equalled 101,652 gross shares paid, where portion is delivered in cash, as a portion corresponding to the tax obligation will be withheld to cover income tax. The Board decided to include the CEO in ongoing LTI 2024 and LTI 2025 plans to bridge the cap in the LTI earning possibility and to align with same plans and structures as for rest of leadership team members. The maximum earning opportunity is capped at 150% of annual base salary at the time of share grant. Additionally, the CEO was exceptionally granted 52,080 restricted shares from LTI 2024 plan. |
| Other benefits | All benefits are included in the annual base salary. |
| Pension | The retirement age and pension according to Finnish statutory pension plan. In addition, as of 2026 the President and CEO is entitled to participate in a supplementary defined contribution pension plan. The supplementary pension contribution is equivalent to 23.5% of the annual salary and earned STI. |
| Termination of assignment | There is a notice period of six months with a severance payment of twelve months salary on termination by the company but with no contractual payments on any change of control. |
| Total remuneration | Total remuneration earned (paid) in 2025 amounted to EUR 2,164,671. |
| Earned proportion of fixed to variable remuneration | In 2025, the proportion of fixed compensation earned was 47%, while the proportion of variable compensation earned was 53%. |
| Share ownership guideline | The company recommends and expects the CEO and GLT members to hold Stora Enso shares at a value corresponding to at least one annual base salary. Stora Enso shares received as remuneration are therefore recommended not to be sold until this level has been reached. |
For more information about President and CEO remuneration, please see the Remuneration Report.
Group Leadership Team’s remuneration (excluding the President & CEO)
| Total compensation | EUR 8,975,000 in 2025 |
|---|---|
| Short term incentive (STI) programmes | In 2025, GLT members had STI programmes with up to a maximum of 80% of their annual fixed salary, payable the year following the performance period. 100% of the STI for 2025 was based on Group and segment financial measures. |
| Long term incentive (LTI) programmes for management | At the end of the year, the performance period for the 2023 programme ended, and will be settled in one portion after three years, in March 2026, depending on Earnings Per Share (EPS) for the Stora Enso Group, Relative Total Shareholder Return (TSR) and ESG metrics (emission reduction and diversity) . The outcome of the Performance Share programme will be confirmed in the beginning of March 2026, once the relative TSR outcome is confirmed. The maximum number of shares due to executives (GLT members at year-end) from programmes that ended during 2025 amounted to 161,880 shares. The total number of shares actually transferred will be based on the confirmed outcome and a portion corresponding to the tax obligation will be withheld to cover income tax. |
| Share ownership guideline | The company recommends and expects the CEO and GLT members to hold Stora Enso shares at a value corresponding to at least one annual base salary. Stora Enso shares received as remuneration are therefore recommended not to be sold until this level has been reached. |
| Pension | In accordance with their respective pension arrangements, the GLT members may retire at sixty-five years of age with pensions consistent with the local practices in their respective home countries. Employment contracts provide for six months’ notice prior to termination, with severance compensation of twelve months basic salary if the termination is at the Company’s request. |
