Extra pension plan for Finnair CEO conflicting: Minister

Economic Affairs Minister Mika Lintilä on Monday termed the supplementary pension plan approved for the Finnair chief executive officer conflicting.

Finnair CEO Pekka Vauramo was granted a pension amount of EUR 130,000 in 2016 on top of his occupational pension.

Lintilä, also the minister responsible for ownership steering of Finnair, decided to discuss the issue with the respective authorities, said a government press release.

“Having received reports from the Ownership Steering Department of the Prime Minister’s Office and from Finnair’s Board of Directors on the phases involving the supplementary pension decision for Finnair’s CEO, it has to be said that they are mutually conflicting,” said the minister.

He said that he decided to hold a meeting with Finnair Chairman Jouko Karvinen, Government Ownership Steering Department Director-General Eero Heliövaara, and Remuneration Committee Chairman Jussi Itävuori to go through this matter together.

“We will convene at a time convenient for all parties and as swiftly as possible,” Lintilä added.

Meanwhile, the Finnair authorities have defended the plan to increase the pension of Pekka Vauramo to the yearly amount of EUR 130,000, reported the national broadcaster Yle.

Finnair board Chairman Jouko Karvinen released a public letter to Minister Lintilä saying that the added pension, counted as 20 per cent of the CEO’s fixed annual salary, was granted due to Vauramo’s “high-quality work” and because, the carrier says, 70 per cent of the listed domestic companies abide by the same practice, said the Yle report.