The Finnish Broadcasting Company has reinstated performance bonuses for its management team after a two-year suspension. The public broadcaster's board confirmed the decision this week, marking the end of temporary cost-cutting measures implemented during the company's savings program.
Board chairman Matti Apunen explained the move in written responses to media inquiries. He emphasized that the bonus freeze was always planned as a temporary measure. The suspension covered both 2024 and 2025 performance targets as part of broader austerity measures.
What does this mean for executive compensation? The managing director can now receive performance bonuses up to 15% of their fixed annual salary. With the current managing director's monthly salary at 26,000 euros, the maximum potential bonus reaches approximately 47,000 euros annually.
The previous managing director received performance bonuses exceeding 27,000 euros in some years. All management team members follow similar compensation principles, with bonuses tied to achieving specific performance targets.
Why did Yle suspend bonuses initially? The broadcaster implemented comprehensive cost reductions across all operations. Management bonus suspensions represented just one component of these austerity measures. The freeze generated substantial savings during the two-year period.
In 2024 alone, the company saved approximately 700,000 euros by not paying incentive bonuses in the final round. The total estimated savings from freezing the incentive bonus system reached 1.7 million euros for 2024.
The bonus system affects more than just top executives. Other managers and staff members also participate in performance-based compensation programs. For non-management staff, annual performance bonuses can reach up to 8% of their salary.
Incentive bonuses for regular staff work differently from management performance bonuses. Staff incentives reward exceptional performance that advances the company's strategic goals. These bonuses range from 500 euros to 4% of annual salary.
During 2024, the broadcaster paid 835,733 euros in incentive bonuses to 1,068 employees based on their 2024 targets. Combined performance and incentive bonuses represented 1.1% of the company's total wage bill.
What changes immediately? Management can now earn bonuses based on 2026 performance targets, payable in 2027. Staff incentive bonuses may resume as early as next year since they follow different payment schedules.
The company maintains that its compensation system follows state ownership steering guidelines. The objective remains ensuring Yle stays competitive as an employer for both management and staff.
Some practical changes won't reverse despite the bonus restoration. The management car service previously available to executives won't return. The vehicles were sold and drivers retired during the cost-cutting period.
This bonus restoration reflects Finland's ongoing balancing act between public sector austerity and competitive compensation. As the national broadcaster navigates budget constraints, it must also retain talent in a competitive media landscape. The return to pre-austerity bonus structures suggests the worst financial pressures may have eased.
How do public reactions typically unfold in such cases? Finnish taxpayers often scrutinize public broadcaster spending closely. The restoration of management bonuses likely will draw mixed responses from different stakeholder groups.