The Board of Directors appoints and discharges the President and CEO and decides on the President and CEO's remuneration and the other terms and conditions of the President and CEO's engagement. By decision of the Board of Directors, the President and CEO is paid a fixed base salary, which is a compensation for the President and CEO's responsibilities and is based on the requirements of the position, the President and CEO's individual's competence and performance as well as prevailing market practice.
Metsä Group’s CEO changed on 1 July 2025, when the current CEO, Jussi Vanhanen, started in the position.
CEO Jussi Vanhanen’s monthly salary is EUR 70,000 (January 2026). The monthly salary includes a car and phone benefit. In addition, the CEO has a defined contribution supplementary pension.
A short and long-term incentive can be paid to the President and CEO by decision of the Board of Directors. In 2026 the maximum level of remuneration available in the short-term incentive scheme is, accounting for Metsä Group's EBIT multiplier 112.5% of the fixed annual salary. The reward is based on Metsä Group's operating result (40% weighting), Metsä Group´s sustainability target (10% weighting), Metsä Group Cost Savings target (20% weighting) and the strategic goals defined by the Board of Directors (30% weighting) as well as the realisation of Metsä Group's EBIT multiplier. The potential reward shall be paid in March 2027. The CEO is included in the 2023–2027 long-term performance plan for the 2025–2027 performance period and 2026–2030 long-term performance plan for the 2026–2028 performance period. More detailed information is available on the long-term remuneration website.
The terms of CEO Jussi Vanhanen’s employment are defined in a written executive contract approved by the Board. The notice period under the contract is six months. If the company terminates the employment, Vanhanen is entitled to severance pay equivalent to 12 months’ total salary. No severance is paid if Vanhanen resigns voluntarily.
The CEO is covered by the Employees Pensions Act, which provides statutory pension security based on service time and earnings. CEO Jussi Vanhanen’s retirement age is in accordance with the Employees Pensions Act. Vanhanen is also covered by a defined contribution supplementary pension scheme with a set retirement age of 63. The annual supplementary pension contribution is 20% of the CEO’s total salary, including short-term incentives. If the CEO’s employment ends before retirement age, he is entitled to a free policy.
Remuneration of the President and CEO in 2026
In 2026 the maximum level of remuneration available in the short-term incentive scheme was, accounting for Metsä Group's EBIT multiplier 93.75% of the fixed annual salary. The reward was based on Metsä Group's operating result (40% weighting), Metsä Group´s sustainability target (10% weighting) and the strategic goals defined by the Board of Directors (50% weighting) as well as the realisation of Metsä Group's EBIT multiplier. In 2026, no short-term remuneration was paid to the President and CEO for 2025 when the threshold indicator of the short-term remuneration scheme (Metsä Group's operating profit) fell below the threshold value.
The CEO is included in the 2026-2030 long-term performance plan 2026-2028 performance period and in the 2023–2027 long-term performance plan for the 2025-2027 performance period.
The reward for the 2022–2024 performance period under the 2020–2024 long-term performance plan was paid to the former CEO Ilkka Hämälä after the retention period in March 2026. The performance period outcome was 60%. The reward amount was based on the value of Metsä Group’s synthetic share. The former CEO received a reward of EUR 509,647 paid entirely in cash.
Remuneration of the President and CEO in 2025
In 2024 the maximum level of remuneration available in the short-term incentive scheme was, accounting for Metsä Group's EBIT multiplier 93.75% of the fixed annual salary. The reward was based on Metsä Group's operating result (50% weighting) and the strategic goals defined by the Board of Directors (50% weighting) as well as the realisation of Metsä Group's EBIT multiplier. No short-term incentive was paid to the President and CEO in March 2025 since the threshold value was not reached.
The President and CEO Vanhanen was included in the 2023–2027 long-term performance plan for the 2025-2027 performance period. The former president and CEO Hämälä was included in the 2023–2027 long-term performance plan for the performance periods 2023-2025, 2024-2026 and 2025-2027.
The reward for the 2021–2023 performance period under the 2020–2024 long-term performance plan was paid to the former CEO Hämälä after the retention period in March 2025. The performance period outcome was 100%. The reward amount was based on the value of Metsä Group’s synthetic share. The CEO received a reward of EUR 1,777,051 paid entirely in cash.
In 2025, the payment of the President & CEO Jussi Vanhanen´s suplementary defined contribution pension arrangement was EUR 84,000.
In 2025, the index payments of the former President & CEO Ilkka Hämälä's supplementary defined benefit pension arrangement was EUR 111,780.