At the end of the financial year, OP Financial Group had 12,356 employees (12,856). The annual average number of personnel was 12,548 employees (13,461). The reorganisations and enhancement measures carried out in cooperative banks and OP Cooperative Consolidated had an effect on the reduction of the number of personnel during the review period.
A total of 323 people (343) retired from OP Financial Group during the financial year at an average age of 61.7 years (61.7).
OP Financial Group’s scheme for variable remuneration comprises short-term company-specific incentives and long- term Group-wide incentives.
The long-term scheme for the entire OP Financial Group consists of a management incentive scheme and a personnel fund for other staff.
The long-term incentive scheme for management was extended by a new three-year performance period for the years 2014–2016. OP Financial Group's personnel fund remuneration system will also be extended by one-year performance periods.
OP Cooperative's Supervisory Board decided in spring 2014 on new Group-level targets within OP Financial Group's long-term remuneration schemes. The Group-level targets are congruent both in the management incentive scheme and OP Financial Group’s Personnel Fund.
The regulations regarding the financial industry's incentive systems have been taken into account in drawing up the Group's incentive systems. As a rule, the incentive system for 2014–2016 follows the principles observed during the previous three-year earning period.
As new long-term performance indicators, the Supervisory Board of OP Cooperative Consolidated set the earnings of OP Financial Group before taxes, the Group's CET1 and the growth rate of loyal customers.
The presiding officers of the central cooperative's Supervisory Board shall decide on remuneration and other benefits of OP Financial Group's Executive Chairman and CEO, who is also the central cooperative's CEO, and of the other central cooperative's Board members, deputy members and Chief Audit Officer. A written executive contract, approved by the Supervisory Board, stipulates the terms and conditions governing each Executive Board member’s, deputy member’s and the Chief Audit Executive’s employment.
Information required by the EU capital requirements regulation and directive concerning the remuneration of persons affecting OP Financial Group's risk exposure are published annually on OP's website.
OP's Executive Chairman and CEO received EUR 754,392 in salary, EUR 18,134 in fringe benefits and EUR 209,028 in both short-term and long-term bonuses, totalling EUR 981,554. The other Board members, deputy members and the Chief Audit Officer received EUR 2,297,047 and the fringe benefits EUR 101,767, and the short-term and long-term bonuses EUR 477,673, totalling EUR 2,876,488.
Salaries and bonuses include the amount of the performance-based bonuses for 2011, 2012 and 2013 paid in 2014. A total of EUR 199,589 of the performance-based bonuses earned by the Executive Chairman and CEO and Executive Board members in 2013 has been deferred to be paid in three instalments in 2015–2017. The deferment is based on a procedure prescribed in the Act on Credit Institutions (610/2014), which is described in Note 57 of OP Financial Group's IFRS Financial Statements on variable remuneration.
The Executive Chairman and CEO, the other Board members, deputy member and the Chief Audit Executive retire at 63. Pension benefits are determined in accordance with pension laws and OP Financial Group’s own pension plans.
The Executive Chairman and CEO is covered by OP Bank Group Pension Foundation’s supplementary pension scheme. Pension accrued under the supplementary pension scheme may begin to be paid out as a paid-up pension before the old-age pension if employment with OP Financial Group terminates.
Three other Executive Board members are covered by OP Bank Group Pension Foundation’s supplementary pension scheme. Supplementary pension for the other Executive Board member, deputy member and the Chief Audit Executive have been arranged through OP Life Assurance Company Ltd.
In 2014, no costs were recognised under the OP Bank Group Pension Foundation supplementary pension scheme. The supplementary pension insurance costs of OP Life Assurance Company Ltd totalled EUR 460,310.
Supplementary pension costs have been published in the credit institutions’ remuneration data collected annually by the European Banking Authority (EBA) in accordance with EU capital requirement regulation and directive (EU 575/2013) and Capital Requirements Directive (2013/36/EU, CRD IV).
The period of notice for the Executive Chairman and CEO, other Executive Board members, deputy member and the Chief Audit Executive is 6 months. Upon termination of employment in cases specificially stipulated in their executive contracts, the Executive Chairman and CEO is entitled to a severance pay and a sum equivalent to a maximum of 12 months’ pay, while other Board members, deputy members and the Chief Audit Officer are entitled to a sum equivalent to a maximum of 6 months' pay.