The CEO is responsible for routine administration of the company and managing operations in accordance with the guidelines and instructions of the Board as well as for providing the Board with information and the necessary documentation for decisions. The CEO leads the work of Executive Management and takes decisions after consulting its members.
Chief Executive Officer
The CEO presents reports at Board meetings and is to ensure that Board members are routinely sent the information needed to monitor the Company’s and the Group’s financial position, earnings, liquidity and development.
Executive Management includes the CEO, the Chief Financial Officer, the Communications Director and the managing directors of the four regions. Executive Management has joint responsibility for delivering on Group-wide goals and strategies, and decisions on overall operational issues are discussed and taken at the meetings that take place. Executive Management held 24 meetings in 2020.
In 2020, Executive Management invested a great deal of time into change and crisis management as a consequence of the coronavirus pandemic. The crisis put both management and procedures to the test, since more than half of the operation transitioned to being managed remotely, and the vast majority of meetings – both internal and external – took place digitally. The crisis management plan that Castellum worked under has functioned very well. The fact is that the crisis promoted better internal communication and closer dialogues with customers, which will furnish Castellum with great value going forward as well.
The work of Executive Management during the year concerned a high level of activity on the transaction market in line with the strategy of increasing quality and refining the portfolio. Worth mentioning among these are crucial acquisitions in Helsinki, the sale of a stabilised, mature portfolio of warehouse and logistics properties to Blackstone at a premium of 20% against the latest valuation at 30 September 2020, and the public takeover offer for the Norwegian listed company Entra ASA.
The information above refers to the situation at the end of December 2020. Shareholdings include member’s own holdings and those of spouses, minors and children living at home, holdings of associated companies and holdings through capital insurance. The CEO has no material holdings or partnerships in companies that Castellum has significant business connections with.
Remuneration to senior executives
The 2020 AGM resolved on the following guidelines for remuneration to senior executives:
Remuneration levels must be market-based and competitive. For work performed in a satisfactory manner, remuneration will be paid in the form of fixed salary. Pension benefits will be defined-contribution and not exceed 33% of the annual salary. In addition to fixed salary, variable remuneration will be offered that rewards clearly goal-related performances in simple, transparent constructions in accordance with an earnings and share price-related incentive plan. Variable remuneration of this kind is intended to promote long-term value creation and sustainability initiatives in the Group. Variable remuneration in accordance with the earnings and share price-related incentive plan, which cannot exceed the annual fixed salary in any given year, is determined by the extent to which objectives set in advance regarding growth in income from property management per share, and share price trend, are achieved as well as how individually set factors have developed. The previously determined targets pertaining to variable remuneration must be clearly linked to the business strategy and Castellum’s long-term value creation, including its sustainability initiatives. Variable remuneration that has fallen due will be paid in the form of salary, including holiday pay, and will not be pensionable if it does not otherwise follow from compulsory collective bargaining agreements. Additionally, the Board of Directors has the right to call in variable remuneration that was paid on the basis of information that later turned out to be incorrect and submitted with the intent to mislead.
The notice period upon termination by the Company must not exceed six months for the CEO and twelve months for the other executives. When notice of termination is given by the Chief Executive Officer or any other senior executive, the notice period is six months. During the notice period, a full salary and other employment benefits will be paid, less salary and other remuneration received from other employment or operations that the employee has during the period of notice. Deductions of this kind will not take place as regards the CEO. Upon termination of the CEO by the Company, a severance package will be paid of twelve months’ fixed salary, which is not to be reduced owing to other income the CEO receives.
The guidelines cover senior executives that are part of Castellum’s Executive Management. The Board of Directors will have the right to depart from the guidelines in full or in part in individual cases if there is particular reason to do so and a departure is necessary to provide for Castellum’s long-term interests, including its sustainability initiatives.
Castellum has complied with the guidelines resolved by the 2020 AGM.
For further information regarding remuneration to Executive Management, refer to Note 11.
For the 2021 AGM, guidelines have been proposed for remuneration to senior executives; refer to Guidelines for remuneration to the executive management.