RemunerationStarting from the financial period 2020, the principles of the remuneration of KH Group’s governing bodies, that is, the Board of Directors and the CEO, are defined in the Remuneration Policy. Remuneration policy 2023 Remuneration reportingThe company draws up a remuneration report for each financial period. It is presented to the Annual General Meeting each year and explains the remuneration paid and due to the governing bodies for the previous financial period. Remuneration Report 2023Remuneration Report 2022 Key remuneration principlesRemuneration of the members of the Board of DirectorsIn accordance with the decision of the Annual General Meeting of 2023 the remuneration of the Board of Directors remain unchanged, so that the Chairman of the Board of Directors be paid as remuneration EUR 3,550 per month and the members of the Board of Directors each EUR 2,300 per month, and that the travel expenses of the members of the Board of Directors be compensated in accordance with the company’s travel policy. Earnings-related pension insurance contributions are paid voluntarily for the paid remuneration. Remuneration of the CEOCEO Lauri Veijalainen’s fixed remuneration consists of a monthly salary of EUR 8,000. No short-term or long-term incentives have been defined for the CEO during this financial year but he is entitled to participate in the incentive shcemes determined by the Board of Directors since the beginning of 2024. The CEO’s service contract is a valid indefinitely. Both the company and the CEO have the right to terminate the service contract with six (6) month’s notice. The CEO’s retirement age and the basis for determining the pension are determined by law. Lauri Veijalainen holds also the position of CEO of Indoor Group. Remuneration of other managementThe company’s other management includes the CFO. The CFO’s fixed remuneration consists of a monthly salary and fringe benefits. CFO is entitled to participate the bonus and incentive schemes of the Company, according to the sole discretion of the Company. The required criteria for the schemes will be determined by the Company. The CFO’s service contract is valid indefinitely. Both the company and the CFO have the right to terminate the service contract with three (3) month’s notice. In 2022 the salary and fees paid to other management was EUR 243,363 in total, divided as follows: RoleFixed remuneration, EURVariable remuneration, EURTotal, EUROther management131,623100,000231,623The CFO of the company, belonging to other management, served in 2022 on the Board of Directors of Sievi Capital’s target company HTJ. For this, he received total cash remuneration amounting to EUR 8,400 in 2022. Share-based incentive schemesOn 22 December 2022, the Board of Directors of Sievi Capital decided to discontinue the performance-based share scheme for its key personnel established in March 2020. In connection with discontinuing the scheme, the Board of Directors decided to pay cash compensation for the performance periods ending due to the discontinuation to key personnel who have participated in LTI 2020–2022 and LTI 2021–2023 plans initiated thereunder. The total amount of cash compensation to be paid out due to the discontinuation of the scheme is approximately EUR 0.1 million. The cash compensation was recognised in its entirety as an expense for the financial period 2022 and will be paid out after the adoption of Sievi Capital’s financial statements for the financial period 2022. The discontinuation of the share scheme relates to the change in strategy announced by Sievi Capital on 15 December 2022. Consequently, the company’s Board of Directors has determined that there are no more grounds for continuing the share scheme established in March 2020. Following the discontinuation of the share scheme, Sievi Capital’s diluted earnings per share are equal to the undiluted earnings per share. The discontinued performance-based share scheme consisted of three individual plans commencing annually. Each plan included a three-year performance period that always began on 1 January as well as the award of shares, if any, at the end of the performance period, provided that the award terms and conditions were fulfilled. The commencement of each individual plan has required separate approval by the company’s Board of Directors. In 2021, Sievi Capital’s Board of Directors decided that the third plan of the performance-based share scheme, which was originally planned to begin in 2022, would not be commenced. Sievi Capital announced the establishment of its performance-based share scheme on 6 March 2020. LTI 2020–2022The Board of Directors has approved the first plan (LTI 2020–2022) under the share scheme. Its vesting period started on 1 January 2020 and the award of shares, if any, will take place in spring 2023, provided that the performance targets that the Board of Directors has set for the plan are achieved. The shares awarded, if any, are Sievi Capital shares. The performance targets applied to the first LTI 2020–2022 plan are based on Sievi Capital’s average return on equity (ROE). LTI 2021–2023The Board of Directors has approved the second plan (LTI 2021–2023) under the share scheme. Its vesting period started on 1 January 2021 and the award of shares, if any, will take place in spring 2024, provided that the performance targets that the Board of Directors has set for the plan are achieved. The performance targets applied to the first LTI 2020–2022 plan are based on Sievi Capital’s average return on equity (ROE). The Board of Directors decided in 2021 that the third plan of the performance-based share scheme, originally planned to start in 2022, will not be launched.