Proposals for Stora Enso Oyj's Board of Directors
STORA ENSO OYJ STOCK EXCHANGE RELEASE - The Shareholders' Nomination Board has shared recommendations ahead of Stora Enso Oyj's upcoming Annual General Meeting. These proposals, made public well in advance, prepare the ground for a comprehensive evaluation of the company's leadership.
The Board will ask for approval of its composition, suggesting that eight members will continue to serve on the Board of Directors. Among the current members, notable leaders such as Håkan Buskhe, Helena Hedblom, Astrid Hermann, Christiane Kuehne, Richard Nilsson, Elena Scaltritti, and Antti Vasara are nominated for re-election. Additionally, Jouko Karvinen is proposed to join the Board as a new member, marking a significant transition within the leadership structure.
Leadership Changes and Acknowledgments
As part of their announcements, both Kari Jordan, the Chair, and Reima Rytsölä stated that they will not seek re-election. Marcus Wallenberg, Chair of the Shareholders' Nomination Board, offered gratitude for their dedicated service, especially highlighting Kari Jordan's critical role over the past four years in driving Stora Enso's strategic focus and encouraging valuable transformations in the company.
"I thank Kari for his exceptional service. His leadership helped pivot our operational focus and enhance our financial performance," Wallenberg remarked, emphasizing the balance achieved during his tenure.
New Appointments: Fostering Continuity and Strategy
The nomination suggests that Håkan Buskhe will step into the role of Chair, while Jouko Karvinen is proposed for the Vice Chair position. This leadership pairing is viewed as instrumental in maintaining the company’s strategic direction.
Jouko Karvinen, a seasoned executive and former CEO of Stora Enso, brings a wealth of industrial expertise back to the Board. His previous roles across major corporations like Philips and ABB reflect a robust background in leadership and corporate governance.
Focus on Competence and Governance
The Shareholders' Nomination Board emphasizes a governance model aligned with Nordic standards, ensuring nominees possess the requisite skills while also maintaining overall Board competency. This careful selection process underscores the Board’s commitment to fulfilling the broader goals outlined in the Finnish Corporate Governance Code applicable to listed entities.
Remuneration for Board Members
In addition to the proposed changes in leadership, the Nomination Board outlined the remuneration structure for Board positions, recommending that the annual payments remain consistent with the previous year's levels. For 2025, the remuneration is set as follows:
Board of Directors
Chair: EUR 221,728
Vice Chair: EUR 125,186
Members: EUR 85,933
The board remuneration will comprise 40% payable in Stora Enso's shares and the balance in cash. This performance-based structure not only aligns the interests of Board members with the company’s performance but also promotes long-term commitment.
Committee Remuneration Adjustments
The Nomination Board also reviewed committee remuneration, deciding to maintain the annual compensation levels for specific committees, including the Financial and Audit Committee, the People and Culture Committee, and the Sustainability and Ethics Committee. The remuneration for committee chairs and members, respectively, is recommended as follows:
Financial and Audit Committee
Chair: EUR 23,976
Members: EUR 16,868
People and Culture Committee
Chair: EUR 11,988
Members: EUR 7,214
Sustainability and Ethics Committee
Chair: EUR 11,988
Members: EUR 7,214
During the period leading up to the AGM, the Shareholders' Nomination Board held six meetings to finalize their proposals, and every member actively participated in these discussions, advocating for transparency and inclusiveness in the review process.
Stora Enso's Vision and Market Position
Stora Enso's commitment to sustainability is reflected in its operations centered around renewable resources. The company stands as a leader in packaging, biomaterials, and wooden construction, while being one of the largest private forest holders globally. With approximately 19,000 employees, Stora Enso reported sales of EUR 9 billion, showcasing a robust market presence. Stora Enso shares are recognized on Nasdaq Helsinki Oy and Nasdaq Stockholm AB, ensuring accessibility for a wide range of investors.
As Stora Enso continues to transition towards a sustainable future, they aim to reshape the concept of renewable materials, advocating that everything currently produced with fossil-based resources can be constructed using trees tomorrow. This vision not only encases a forward-thinking approach but also aligns with global sustainability initiatives.
Frequently Asked Questions
What changes are proposed for the Board of Directors at Stora Enso?
The Shareholders' Nomination Board has proposed to continue with eight members and re-elect several current members while adding Jouko Karvinen as a new member.
Who will be the new Chair and Vice Chair of the Board?
Håkan Buskhe is proposed to become the Chair, with Jouko Karvinen nominated for the Vice Chair position.
What is the remuneration structure for Board members?
The remuneration will remain the same as in 2025, with a substantial portion to be paid in shares, promoting alignment with company performance.
How many meetings did the Shareholders' Nomination Board hold?
The Shareholders' Nomination Board convened six times to discuss the proposals for the AGM and ensure thorough deliberation.
What is Stora Enso’s focus as a company?
Stora Enso aims to lead in renewable products, emphasizing a sustainable approach to materials, advocating that all fossil-based products can be produced from trees in the future.
