The Finnish Broadcasting Company announced it will reinstate performance bonuses for executives and staff starting in 2026. The decision comes despite recent major staff reductions that saw over 300 employees leave the company.
CEO Marit af Björkesten informed employees on Thursday that the board decided to restore financial incentives after a temporary freeze. The bonus suspension was part of cost-saving measures during 2024 and 2025. Performance bonuses will return in 2026, with incentive payments following in 2027.
This announcement arrives shortly after the company completed two rounds of workforce reductions. Earlier this year, 309 employees departed the organization, including 156 layoffs. The remaining reductions came through retirement arrangements and other measures. A second round in early June saw 14 additional dismissals.
The timing raises questions about corporate priorities during austerity periods. The employee union YOT called the decision hasty given the ongoing savings program. Union chairman Antti Laakso expressed concern about the message this sends to remaining staff.
Laakso told reporters that workers understand the board follows government guidelines for state-owned companies. But he questioned the timing during major budget constraints. He suggested that if money was available, it could have prevented some layoffs. Laakso noted employees and management could manage with regular salaries until better times.
The financial details reveal substantial bonus potential. The CEO earns 26,000 euros monthly and can receive up to 47,000 euros in performance bonuses. Management team members qualify for similar percentages of their annual salaries. Department heads can receive up to eight percent bonuses.
Historical data shows the scale of previous bonus payments. In 2024, the company paid 27,125 euros to then-CEO Merja Ylä-Anttila for 2023 targets. Other management received 187,495 euros, while 246 staff members shared 1.2 million euros in performance bonuses. Staff incentive bonuses ranged from 500 euros to four percent of annual salary.
The parliamentary working group decided in September 2024 to freeze the company's funding index adjustment for 2025-2027. Combined with VAT increases, this creates a 66 million euro funding gap by 2027.
Board chairman Matti Apunen defended the decision as part of the original savings plan. He stated the temporary bonus freeze was always intended to lift after 2025. Apunen emphasized the bonus system follows state ownership guidelines and helps maintain competitive employer status.
The board includes OP Group's HR director Hannakaisa Länsisalmi as vice chair. Members include musician and former MP Mikko Alatalo, Finnish Architecture and Design Museum director Kaarina Gould, and several senior advisors. Board members receive annual fees between 15,000 and 25,000 euros.
This situation highlights the tension between executive compensation and workforce stability in Finnish public broadcasting. The decision demonstrates how state-owned enterprises balance government directives with employee relations during financial pressure. The coming years will show whether restored bonuses improve performance or deepen workforce discontent.