7. EMPLOYEE BENEFITS EXPENSE
MEUR 2014 2013
Salaries and fees 96.7 95.6
Pension costs – defined contribution plans 15.5 16.4
Pension costs – defined benefit plans 0.2 0.0
Share-based payment transaction expense 0.1 0.5
Other employee expenses 8.3 6.9
Total 120.8 119.4
Average total workforce, calculated as full-time employees, excl. distribution staff
Digital Consumer Services 490.5 468.7
Financial Media and Business Services 258.9 402.3
National Consumer Media 160.0 159.5
Regional Media 757.5 786.1
Group functions 161.3 152.5
Total 1828.3 1969.0
Additionally, the Group’s own distribution staff (number of employees) 985 998
Salaries and bonuses paid to management
The reward scheme of the President and CEO of Alma Media Corporation and other senior management is made up of fixed monetary salary (monthly salary), fringe benefits (company car and mobile telephone benefit, with regard to the President also housing benefit), an incentive bonus related to the achievement of result and operational targets (short-term reward scheme), a stock option scheme and a share-based incentive scheme for key employees of the Group (long-term reward scheme), as well as a pension benefit for management.
Parent company President and CEO (Kai Telanne)
MEUR 2014 2013
Salaries and other short-term employee benefits 0.5 0.5
Post-employment benefits 0.2 0.2
Approved stock options to be settled in shares 0.0 0.1
Total 0.7 0.8
The figures in the table are presented on an accrual basis. In 2014, the salary and benefits paid to the President and CEO of the Group totalled EUR 497,783 (in 2013 EUR 576,230).
Pension benefits of the President and CEO:
In addition to statutory employment pension security, the President and CEO has a defined contribution group pension benefit. His pension accumulates by 20% of the annual earnings. He has the right to retire upon reaching 60 years of age, at which time the payment of insurance premiums terminates. The pension is determined on the basis of the insurance savings accrued by the time of retirement. Retirement can be postponed up to 70 years of age. At this time, the pension is determined on the basis of insurance savings adjusted according to the value development of the investment objects.

It is included in the terms and conditions of Alma Media President and CEO’s group pension insurance that when the insured has been within the scope of the agreement for three years, he has the right to a paid-up policy corresponding to the insurance savings accumulated by the termination of the employment relationship. The paid-up policy includes old-age pension at retirement age, disability cover and a death benefit.
Notice period of the President and CEO:
The notice period of the President and CEO is six months. An additional contractual compensation equal to 12 months’ salary is paid if the employer terminates his contract without the President and CEO being in breach of contract. This compensation corresponding to the 12-month salary is not paid if the President and CEO resigns on his own initiative. Alma Media’s Board of Directors decides on the appointment and, as necessary, dismissal of the President and CEO.
Other members of the Group Executive Team
MEUR 2014 2013
Salaries and other short-term employee benefits 1.4 1.4
Benefits paid in connection with dismissal
Post-employment benefits 0.5 0.5
Approved stock options to be settled in shares 0.0 0.2
Total 1.9 2.1
The figures in the table are presented on an accrual basis. In 2014 the salary and benefits paid to the other members of the Group Executive Team totalled EUR 1,388,543 (in 2013 EUR 1,442,262).
Board of Directors of Alma Media Corporation and benefits paid to its members
MEUR 2014 2013
Harri Suutari, Chairman 0.0 0.0
Petri Niemisvirta, Deputy Chairman 0.0 0.0
Niklas Herlin, member 0.0 0.0
Esa Lager, member (as of 20 March 2014) 0.0
Perttu Rinta, member 0.0 0.0
Erkki Solja, member 0.0 0.0
Catharina Stackelberg-Hammarén, member 0.0 0.0
Timo Aukia, member (until 20 March 2014) 0.0 0.0
Kai Seikku, member (until 20 March 2014) 0.0 0.0
Seppo Paatelainen, Chairman (until 14 March 2013) 0.0
Total 0.3 0.3
The figures in the table are presented on an accrual basis.
According to the resolution of the General Meeting, the benefits to the Board members are paid as shares of Alma Media Corporation.
Salaries and benefits to the Board of Directors, the President and CEO, and other members of the Group Executive Team, total
MEUR 2014 2013
Salaries and other short-term employee benefits 2.1 2.2
Post-employment benefits 0.7 0.7
Approved stock options to be settled in shares 0.1 0.3
Total 2.9 3.2
The members of the Board of Directors, the President and CEO of the parent company and the other members of the Group Executive Team together held 12,382,222 shares in the company on 31 December 2014, representing 16.4% of the total number of shares and votes. The company’s Board of Directors, the President and CEO of the parent company and the other members of the Group Executive Team held altogether 325,000 options under the 2009B plan and 325,000 options under the 2009C plan on 31 December 2014. These option rights entitle their holders to subscribe to a maximum of 650,000 new shares in the company.
The option rights and shares owned by the company’s Board of Directors, the President and CEO of the parent company and the Group Executive Team represent 17.1% of the total number of shares and votes.
The individual holdings of Alma Media shares and option rights on 31 December 2014 are as follows *
Shares Options Options
pcs 2009B 2009C
Harri Suutari, Chairman 56,140
Petri Niemisvirta, Deputy Chairman 10,463
Niklas Herlin, member 12,105,961
Esa Lager, member 4,421
Perttu Rinta, member 5,961
Erkki Solja, member 50,417
Catharina Stackelberg-Hammarén, member 11,155
Kai Telanne, President and CEO 89,753 100,000 100,000
Kari Juutilainen, Group Executive Team 30,000 30,000
Virpi Juvonen, Group Executive Team
Kari Kivelä, Group Executive Team 1,410 45,000 45,000
Mikko Korttila, Group Executive Team 1,997 30,000 30,000
Juha-Petri Loimovuori, Group Executive Team 3,755 45,000 45,000
Raimo Mäkilä, Group Executive Team 30,000 45,000 45,000
Minna Nissinen, Group Executive Team 10,789 30,000 30,000
Juha Nuutinen, Group Executive Team
Total 12,382,222 325,000 325,000
* The figures include holdings of entities under their control as well as holdings of related parties.
The holdings granted to the Group Executive Team according to the Performance Share Plan 2012 are not presented in the table, as, in the management’s assessment, the plan will not be realised in accordance with the agreed terms and conditions.
According to the Articles of Association, the Board of Directors of Alma Media Corporation is appointed by the General Meeting of Shareholders. The number of members on the Board of Directors is no less than three and no more than nine. The Board of Directors shall elect from among its members a Chairman and a Deputy Chairman. The term of office for a member of the Board of Directors is one year, ending at the close of the Annual General Meeting following his or her election. The company’s President and CEO may not be the Chairman of the Board.
The company shall have a President and CEO appointed by the Board of Directors. The President and CEO is responsible for managing the administration of the company in accordance with the instructions and requirements of the Board of Directors.