Finnair appoints Pekka Vauramo as CEO
FINNAIR PLC STOCK EXCHANGE RELEASE April 4, 2013 at 09.30 am (EET)
Finnair’s Board of Directors has appointed Pekka Vauramo CEO of Finnair as of June 1, 2013. Vauramo, age 55, has been based in Hong Kong since 2010 and currently works as COO of the MacGregor Business Area of Cargotec, a Finnish cargo and load handling company. Since 2007 he has served in various positions at Cargotec, such as head of Cargotec’s MacGregor Business, deputy CEO of Cargotec as well as head of the Kalmar Business Unit. Vauramo started his managerial career at Sandvik, a Swedish mining and construction company, where he worked from 1985 to 2007. Vauramo holds a MSc (mining) degree from Helsinki University of Technology.
"Pekka Vauramo has a long international experience of logistics and business-to-business trade in global markets. His excellent track record in managing complex partnership processes, strong experience in the Asian markets combined with his leadership skills are a perfect match for Finnair,” says Klaus Heinemann, Chairman of the Board at Finnair. “Our company has a clear strategy regarding Asian growth and reducing costs through partnerships, and it is critical to continue the prompt execution of this strategy.”
“The board is convinced that Pekka Vauramo and his Finnair leadership team have the competencies to drive through the restructuring and cost savings program Finnair started in 2011, and execute Finnair's ambitious Asian and Nordic expansion plans. Pekka Vauramo has a proven track record of leading businesses in the right direction under difficult conditions, and we are confident that Finnair will be able to reach its strategic targets with Pekka at the helm of the company,” Heinemann continues.
“I am excited about joining Finnair, an icon of international aviation known by every Finn. I look forward to working with the Finnair team to further grow the business and to increase the company’s recognition outside Finland, fully leveraging the business potential of Asian markets. The company's turnaround last year gives us a solid ground for building future success,” says Pekka Vauramo. ”Having said that, I recognize that success will require hard work and a faultless execution of the company strategy. I know Finnair people are highly professional and strongly committed to their company. By working together we can grow and achieve sustainable profitability together with our partners. This we can only achieve by continuously developing our service to ensure customer satisfaction.”
Pekka Vauramo will succeed Mika Vehviläinen, who left the company at the end of February 2013 to join Cargotec as its CEO.
A press conference will be held today, April 4, at 11:00 at Helsinki Airport’s World Trade Center, located at Lentäjäntie 3.
Mr Vauramo's picture and CV can be found from the Finnair Group’s website at http://www.finnairgroup.com/group/group_5.html.
His remuneration comprises of the following principal elements:
The fixed monthly base salary of the CEO is EUR 51,500.
The CEO is covered by short and long term incentive plans according to Finnair’s incentive programs applicable at each time. According to the current program, the target incentive level under both the short and long term incentive plans is 30 per cent of the annual base salary. The maximum combined pay-out under the long and short term incentive programs may not exceed 120 percent of the CEO’s annual base salary in any calendar year.
The CEO is entitled to accident, medical expense and life insurance policies. The contract also includes a mobile phone benefit according to Finnair’s mobile phone policy.
The CEO is not entitled to a housing benefit, car benefit or any pension benefits beyond the statutory pension. The CEO’s retirement age follows the statutory pension rules, and for Finnish nationals the standard retirement age is currently 63 years.
The termination notice period under the CEO’s contract is six months for both the CEO and the company. If the contract is terminated by Finnair without cause, the CEO is entitled to a severance pay corresponding to 12 months’ salary at the time of termination in addition to his salary for the termination period. The CEO is entitled to similar compensation in the case the CEO terminates the contract for the company’s material breach of contract, or in the case of the majority owner of the company changes or if the company merges into another company.
For further information please contact: Finnair Media Desk, tel +358 9 818 4020, comms(a)finnair.com