Remuneration

The General Meeting decides annually on the remuneration to be paid to the Board members for their Board and Committee work. The Shareholders’ Nomination Board prepares the proposals concerning the remuneration of the Board of Directors.

Key Remuneration Principles

The annual fees paid to the members of the Board of Lassila & Tikanoja plc are as follows: Chairman EUR 70,000, Vice Chairman EUR 47,000 and the ordinary members EUR 35,000.

However, if a member of the Board of Directors were to serve as the chairman of the Audit Committee or the Personnel and Sustainability Committee, and not simultaneously serve as the Chairman or Vice Chairman of the Board of Directors, their annual remuneration is EUR 47,000. Approximately 40% of the annual fee is paid in Lassila & Tikanoja plc's shares and the remainder in cash.

The Chairman of the Board of Directors of Lassila & Tikanoja is paid a meeting fee of EUR 1,000, the Vice Chairman EUR 700 and the ordinary members EUR 500 per meeting.
Meeting fees are also paid to the Chairman and members of committees established by the Board as follows: Chair EUR 700 and the ordinary members EUR 500 per meeting.

The Board of Directors decides on the terms and conditions of the President and CEO's service contract, and they are specified in the written service contract. The Board of Directors decides on the remuneration payable to the President and CEO and its grounds.

Key remuneration principles

The remuneration of the President and CEO of L&T consists of a fixed monthly salary and ordinary fringe benefits and incentives in force from time to time.

Short-term incentive scheme

The Board of Directors decides on the objectives of the President and CEO's short-term incentive scheme, which are set – and their achievement assessed – annually. The incentive bonus corresponds to a salary of 7 months at a maximum.

Any incentives are paid in February of the year following the earnings period spanning a calendar year. The precondition for payment is that the President and CEO is employed by the Company at the time.

Share-based incentive schemes, long-term incentive scheme

The company’s long-term incentive schemes are designed to commit participants to long-term objectives and increase shareholder value, and to provide a competitive ownership-based reward system. The company has the following share-based incentive scheme for the President and CEO, according to which share rewards are still outstanding after the demerger:

• A share-based incentive scheme for the Group's key employees for the years 2023–2027, which comprises three-year earnings periods covering the calendar years 2023–2025, 2024–2026 and 2025–2027 ("Share-based incentive scheme). The rewards payable on the basis of the earnings periods are paid as a combination of shares and cash within five months of the end of the earnings period.
• For the share-based incentive scheme's earnings period 2023-2025, the actual amount is calculated as the number of shares and confirmed in euros. The earned reward in euros is converted into shares of the employer company of the share-based incentive scheme participant at the time of payment.
• Following the completion of the demerger, the details of Lassila & Tikanoja’s share-based incentive schemes will be decided by the Board of Directors of Lassila & Tikanoja in early 2026.

Other key terms and conditions

The Board of Directors decides on the terms and conditions of the President and CEO's service contract, and they are specified in the written service contract. The Board of Directors decides on the remuneration payable to the President and CEO and its grounds. The remuneration of the President and CEO of Lassila & Tikanoja consists of a fixed monthly salary as well as ordinary fringe benefits and incentives in force from time to time.

The President and CEO's  service contract may be terminated with a notice period of six (6) months. If the Company terminates the President and CEO's service contract for reasons other than a breach of contract or without grounds pursuant to chapter 8, section 1 of the Employment Contracts Act (55/2001, as amended), the President and CEO is entitled to severance pay corresponding to a salary of twelve (12) months in addition to the salary for the notice period.

Separate rewards are not paid to the President and CEO for memberships of the Boards of Directors of the Company’s subsidiaries, and the President and CEO receives no remuneration from L&T Group companies other than the parent company.
The pension benefits of the President and CEO are determined in accordance with the applicable law.

Fees paid to the President and CEO and fixed base salary

The fixed salary of the President and CEO is EUR [xxx]. Because the company was established in connection with the partial demerger on 31 December 2025, no remuneration has been paid by the current company for previous years.

The Board of Directors decides on the remuneration payable to the Group Executive Board and its grounds.

Key remuneration principles

The remuneration of L&T's Group Executive Board consists of a fixed monthly salary as well as ordinary fringe benefits and incentives in force from time to time. The pension benefits of the members of the Group Executive Board are determined in accordance with the applicable law.

Short-term incentive scheme

The short-term incentives of the members of the Group Executive Board are based on the Group’s performance and the achievement of strategic objectives. The bonus equals a maximum of 3–4 months’ salary, depending on the responsibilities of the recipient. The objectives of the short-term incentives are set, and their achievement assessed, annually. Any incentives are usually paid in February of the year following the earnings period, typically spanning a calendar year. Payment is subject to the individual being employed by the Company at the date of payment.

Long-term incentive scheme

The company’s long-term incentive schemes are designed to commit participants to long-term objectives and increase shareholder value, and to provide a competitive ownership-based reward system. The Company has the following share-based incentive scheme for the members of the Group Executive Board, according to which share rewards are still outstanding after the demerger:

• A share-based incentive scheme for the Group's key employees for the years 2023–2027, which comprises three-year earnings periods covering the calendar years 2023–2025, 2024–2026 and 2025–2027 ("Share-based incentive scheme). The rewards payable on the basis of the earnings periods are paid as a combination of shares and cash within five months of the end of the earnings period.
• For the share-based incentive scheme's earnings period 2023-2025, the actual amount is calculated as the number of shares and confirmed in euros. The earned reward in euros is converted into shares of the employer company of the share-based incentive scheme participant at the time of payment.
• Following the completion of the demerger, the details of Lassila & Tikanoja’s share-based incentive schemes will be decided by the Board of Directors of Lassila & Tikanoja in early 2026.

Salaries and fees paid to the Group Executive Board

Because the company was established in connection with the partial demerger on 31 December 2025, no remuneration has been paid by the current company for previous years.

Other key terms and conditions

The notice period for the members of the Group Executive Board is six months. 
 The old-age pension of the members of the Group Executive Board is subject to the general regulations applicable to employee pensions in Finland (TyEL). The members of the Group Executive Board are not covered by any supplementary pension plan.