Helsinki – Nokian Tyres plc is to start using a profit-related bonus scheme for all employees, which will be based on the group’s financial performance, Nokian announced 24 Feb.
The move, it said, follows a decision by the Nokian board to clarify and enhance the rewards scheme, which was previously based on options due to expire in 2019. It does not involve senior executives who have a share-based incentive scheme.
Bonuses earned under the new scheme will be paid into a newly established personnel fund in Finland. Half of the profit-related bonuses paid into Nokian Tyres' personnel fund will be invested in Nokian Tyres plc shares.
"A profit-related bonus based on operating profit will increase the entire personnel's commitment to and interest in the success of the group as a whole,” said Ari Lehtoranta, president and CEO of Nokian Tyres.
“The personnel fund will enable both the company and the personnel to gain greater benefit from the money invested in bonuses than under other forms of bonus scheme," he added.