Finnair Plc         Stock Exchange Release           27 January 2020 at 10.00 am EET 

Number of members of the Board of Directors 

The Shareholders' Nomination Board proposes to Finnair Plc's Annual General Meeting to be held on 18 March 2020 (AGM 2020) that the number of members of the Board of Directors would be confirmed as eight. 

Composition of the Board of Directors 

The current members of Finnair's Board of Directors are Tiina Alahuhta-Kasko, Colm Barrington, Montie Brewer, Mengmeng Du, Jukka Erlund, Jouko Karvinen, Henrik Kjellberg and Jaana Tuominen. The Shareholders' Nomination Board proposes to the AGM 2020 that all the current members of the Board of Directors be re-elected. 

The Shareholders' Nomination Board further proposes that Jouko Karvinen be re-elected as Chairman of the Board. He has been a member of the Board since 2016 and the Chairman since 2017.  

All candidates have given their consent to the position, and all, except Jukka Erlund, are independent of the company and its significant owners. Jukka Erlund is not deemed to be independent of the company, because Piia Karhu, Finnair's Senior Vice President, Customer Experience, is a member of the Board of Directors of Kesko Plc and Jukka Erlund is the Executive Vice President, CFO of Kesko Plc.  

The biographical details of Board members proposed for re-election can be found at Finnair's company website: investors.finnair.com 

Board of Directors' remuneration 

 
The annual remuneration currently paid to the Board of Directors is as follows: 

·
Chairperson 61,200 euros 

·
Vice Chairperson 32,400 euros 

·
Chairpersons of the Audit Committee and of the People and Renumeration Committee 32,400 euros, where these individuals are neither the Chairperson nor the Vice Chairperson of the Board 

·
Other members 30,000 euros per year 

In addition to the annual remuneration, each member's fee for a meeting of the Board of Directors or its Committee is 600 euros when the meeting takes place in the member's country of residence and 2,400 euros for other meetings. For telephone meetings, the fee is 600 euros. 

The members are entitled to reimbursement of reasonable travel and representation expenses in accordance with the company's general expenses policy. 

The members and their spouses are entitled to discounted travel on the company's flights in accordance with the company's discount ticket policy regarding the Board of Directors. 

Annual remuneration for members of Board of Directors has remained unchanged since 2008. Based on a study by an independent expert, remunerations for Finnair's Board of Directors have fallen behind the market level. According to the CEO's and Board of Directors' remuneration policy prepared by the Board, the remunerations should be at the market level. The Shareholders' Nomination Board supports said remuneration policy. 

The Shareholders' Nomination Board has established that a phased plan supported by the largest shareholders is required to reach the market level. As the State of Finland has not yet established its view on the remuneration development, the Shareholders' Nomination Board has not been able to prepare its remuneration development plan and, therefore, it does not make a proposal regarding the Board of Directors' remuneration to the AGM 2020.  

The State of Finland has informed the Shareholders' Nomination Board that it will propose to the AGM 2020 that the annual remuneration for a member of the Board of Directors would be increased to 30,300 euros, the annual remuneration for a Vice Chairperson and Chairpersons of Committees be increased to 32,700 euros and the remuneration for the Chairperson be increased to 63,000 euros. 

Composition of the Shareholders' Nomination Board  

The members of the Shareholders' Nomination Board are Minna Pajumaa, Senior Financial Counsellor, Government Ownership Steering Department; Timo Sallinen, Investment Director, Varma Mutual Pension Insurance Company; Mikael Etola, Managing Director, Etola Oy; and Jouko Karvinen, Chairman of Finnair's Board of Directors. 

The above proposals will be included in the forthcoming invitation to the AGM 2020. 

For further information, please contact:  

Minna Pajumaa, Senior Financial Counsellor, Government Ownership Steering Department, tel. +358 2 9516 0147 

Finnair Plc 
Communications 

Distribution: 

 
Nasdaq Helsinki 
Principal media 

Finnair is a network airline specialising in passenger and cargo traffic between Asia and Europe. Helsinki's geographical location gives Finnair a competitive advantage, since the fastest connections between many European destinations and Asian megacities fly over Finland. Finnair flies to 19 destinations in Asia, 8 in North America and over 100 destinations in Europe. Finnair is the only Nordic network carrier with a 4-star Skytrax ranking and a member of the oneworld alliance. In 2018, Finnair's revenues amounted to EUR 2.850 million and it carried over 13 million passengers. Finnair Plc's shares are quoted on Nasdaq Helsinki.

https://news.cision.com/finnair/r/proposals-by-shareholders--nomination-board-to-annual-general-meeting,c3017541

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