Notes to the Consolidated Financial Statement

 

28. Related party transactions   

Two parties are considered related if one party can exercise control or significant power in decision-making associated with the other party’s finances and business operations. The Group’s related parties include the parent company and subsidiaries, in addition to the members of the Board of Directors and the Management Team.

Remuneration paid to the CEO and Group management during the financial period, including fringe benefits, was as follows:

€ 000

2011

2010

Salaries and other short-term employee benefits

1,599

1,893

Share-based bonuses 194 285
Total 1,793 2,178


The salaries and fees paid in 2011 to the CEO and the members of the Board of Directors were as follows:

 

 

 € 000

Kyttälä Pertti

Chairman of the Board of Directors

75

Mehtälä Martti

Vice Chairman of the Board

50

Ingman Robert

Member of the Board

37

Karvinen Kari

Member of the Board

39

Sivonen Pekka Member of the Board 38
Uhari Tommi Member of the Board 38
Virtanen Marjatta Member of the Board 39

Varelius Juha

CEO

596

Total

 

913


The incentive schemes are described in Note 20 Share-based payments and in the separate report on corporate governance. Transactions related to the sale of services to related parties totalled EUR 9,300 (EUR 14,700 in 2010). Transactions associated with the purchase of goods or services totalled EUR 93,900 (EUR 16,200 in 2010). The Group has no related-party loans.