Finland's national broadcasting company Yle faces mounting criticism after approving executive bonuses while implementing cost-cutting measures that included laying off 170 employees. The decision has sparked controversy across political parties and drawn scrutiny from Yle's supervisory board.
The company's board recently decided to reinstate financial incentives, including performance bonuses for management and incentive payments for staff. These payments had been frozen during 2024 and 2025 as part of cost-saving measures. Performance bonuses are now scheduled for payment in 2026, with incentive payments following in 2027.
Employee representatives have called the decision thoughtless, particularly given the company's ongoing austerity program and the possibility of further layoffs. The YOT union expressed concerns about the timing and message being sent to remaining staff members.
Political pressure has been building rapidly. Multiple political parties have approached the chair of Yle's Administrative Council, Sinuhe Wallinheimo, expressing concerns about the bonus decision. Wallinheimo confirmed that more than half of parliamentary parties want the matter reviewed at the next Administrative Council meeting in early December.
Wallinheimo stated that parties generally view the timing of reinstating bonus programs as inappropriate, particularly regarding performance bonuses. He specifically confirmed that his own party, the National Coalition Party, considers the timing poor. The Administrative Council, composed of parliament members, cannot directly decide on bonus matters but can provide recommendations to Yle's board.
Yle's CEO Marit af Björkesten earns a monthly salary of 26,000 euros and could receive performance bonuses up to 15% of her annual salary, amounting to 47,000 euros. Other management team members follow similar compensation principles. Department heads could receive up to 8% of their annual salary in performance bonuses.
The decision appears particularly controversial given recent bonus history. In 2024, Yle paid 27,125 euros in performance bonuses to then-CEO Merja Ylä-Anttila for 2023 targets, while the rest of the management team received 187,495 euros collectively. Other employees received 1.2 million euros in performance bonuses, distributed among 246 staff members.
Staff incentive bonuses range from 500 euros to 4% of annual salary. For 2024 targets, Yle paid 835,733 euros in incentive bonuses to 1,068 employees.
Board Chair Matti Apunen defended the decision, stating it aligns with Yle's original savings plan. He explained that incentives were temporarily frozen so no payments would be made for targets set in 2024 and 2025. Apunen emphasized that the broader savings package has been implemented properly, allowing the company to proceed as planned with bonus reinstatement.
The controversy highlights ongoing tensions in Finnish public broadcasting between financial constraints and compensation practices. Yle operates as a public service broadcaster funded primarily through television license fees, making executive compensation particularly sensitive to public and political scrutiny. The timing raises questions about organizational priorities during periods of staff reduction and budget constraints.
What remains unclear is whether political pressure will force Yle to reconsider the bonus timeline. The Administrative Council's upcoming meeting will likely address both the optics and substance of paying substantial bonuses shortly after significant staff reductions. The outcome could set important precedents for how public institutions balance executive compensation with workforce stability during financial challenges.