#Finland #Espoo #Board of Directors #Valmet #Nomination Board

Valmet Updates Board of Directors Proposal

Valmet Oyj, a prominent player in the process industries, recently announced an update from its Shareholders' Nomination Board regarding the composition and remuneration of its Board of Directors. This announcement comes ahead of the Annual General Meeting (AGM) set for March 26, 2025, and reflects key leadership changes that will shape the governance of the company moving forward.

Key Changes in the Board Proposal

In December 2024, Valmet's Nomination Board initially proposed a revised number of eight members for the Board of Directors. Recent developments, however, led to the withdrawal of Per Lindberg's candidacy for the Vice-Chair position. Consequently, the Nomination Board has adjusted its recommendations to include:

• - The nomination of Bernd Eikens and Jonas Gustavsson as new members of the Board, alongside Pekka Vauramo who is proposed to continue in his role.
• - Annika Paasikivi has been suggested as the new Vice-Chair of the Board, taking over from Lindberg who is not seeking re-election.

The Board of Directors is slated to consist of established members Anu Hämäläinen, Pekka Kemppainen, Monika Maurer, and Annareetta Lumme-Timonen, who are all proposed for re-election, ensuring continuity in leadership.

Leadership Backgrounds

The proposed new members bring a wealth of experience to the table. Pekka Vauramo, aged 67, has held significant leadership positions, including President and CEO roles at Metso Corporation. With a solid educational background in technology, he promises to bring valuable insights to Valmet's strategy and operations.

Bernd Eikens, on the other hand, is recognized for his position as Group CEO of Meyer Shipyards, along with a strong background in the paper industry. Holding a PhD in Chemical Engineering, Eikens has substantial expertise in operations that will benefit Valmet's future endeavors.

Lastly, Jonas Gustavsson, previously President and CEO of AFRY AB, has extensive managerial experience within established global firms and will add a fresh perspective to the Board's strategic discussions.

Remuneration Adjustments

As part of the updated proposal, the Nomination Board has also suggested modifications to the remuneration structure for Board members. The new remuneration plan includes:

• - an increase to EUR 155,000 for the Chair (up from EUR 150,000),
• - EUR 85,500 for the Vice-Chair (previously EUR 82,500),
• - EUR 68,000 for regular Board members (up from EUR 66,000).

Additionally, the Nomination Board proposed both a base fee structure for committee roles and a meeting fee based on the location of the members. Members residing in Nordic countries would receive EUR 750 for meetings, while those in Europe would see that fee rise to EUR 1,500 and to EUR 3,000 for members located outside Europe.

In a new initiative, the Board members will be required to utilize 40% of their fixed annual remuneration to purchase Valmet shares. This move is expected to align members' interests with those of shareholders and bolster long-term commitment to the company's growth.

Conclusion

The changes put forth by Valmet's Nomination Board underscore a significant shift in governance ahead of the upcoming Annual General Meeting. With a mix of continuity and new expertise, the company aims to navigate the challenges within the process industries effectively while enhancing shareholder value. As always, the proposed slate of candidates will be subject to shareholder approval at the AGM, marking an essential step for Valmet's governance for the term ending in 2026.

For further updates and details on the upcoming AGM, please visit Valmet's official website.