Personnel - the cornerstone of our operations

3.8 Personnel - the cornerstone of our operations

Fingrid Oyj employed 334 (315) persons, including temporary employees, at the end of the year. The number of permanent personnel was 291  (280). Of the personnel employed by the company, 25.0 (24.4) per cent were women and 75.0 (75.6) per cent were men. The average age of the personnel was 44 (44).

9. EMPLOYEE BENEFITS EXPENSES, €1,000
  2016 2015
Salaries and bonuses 22,735 21,320
Pension expenses - contribution-based schemes 4,433 3,518
Other additional personnel expenses 1,430 967
Total 28,598 25,804
     
Salaries and bonuses of top management 1,553 1,472

In 2016, the Group applied a remuneration system for senior management; the general principles of the system were accepted by the Board of Directors of Fingrid Oyj on 18 December 2015. The total remuneration of the members of the executive management group consists of a fixed total salary, a one-year bonus scheme, and a three-year long-term incentive scheme. The maximum amount of the one-year bonus scheme payable to the CEO was 25 per cent of the annual salary and to the other members of the executive management group 20 per cent of the annual salary. The maximum amount of the annual long-term incentive scheme payable to the CEO was 35 per cent and to the other members of the executive management group 25 per cent.

The Group currently has contribution-based pension schemes only. The pension security of the Group's personnel is arranged by an external pension insurance company. Pension premiums paid for contribution-based schemes are recognised as an expense in the income statement in the year to which they relate. In contribution-based schemes, the Group has no legal or factual obligation to pay additional premiums if the party receiving the premiums is unable to pay the pension benefits.

NUMBER OF SALARIED EMPLOYEES IN THE COMPANY DURING THE FINANCIAL YEAR:
  2016 2015
Personnel, average 336 319
Personnel, 31 Dec 334 315

Accounting principles

Employee benefits


Pension obligations

The company has only defined contribution-based pension schemes. A defined contribution-based pension arrangement refers to a pension scheme according to which fixed contributions are paid into a separate entity, and the Group bears no legal or actual obligation to make additional contributions if the fund does not contain sufficient funds to pay out benefits based on work performed during current and previous financial periods to all employees. Under defined contribution-based pension schemes, the Group pays mandatory, contractual or voluntary contributions into publicly or privately managed pension insurance policies. The Group has no other contribution obligations in addition to those payments. The payments are entered as personnel costs when they fall due. Advance payments are entered in the balance sheet as assets insofar as they are recoverable as refunds or deductions from future payments.