Wages and salaries

Personnel increased as the business developed favorably

In 2011, we paid wages and salaries, excluding indirect employee expenses, of EUR 1,229 million, or 18 percent of net sales (EUR 1,106 million and 20% in 2010). The number of employees and the performance-based bonuses and incentives have an impact on the total amount of wages and salaries. The wages and salaries on the income statement are the gross amount, a portion of which is paid by the employees as taxes to society. The wages and salaries also include holiday pay.

The amount of bonuses paid remained at the level of the comparison period. Within the framework of collective agreements, we apply profit- and performance-based incentive systems when it justifiably supports management. In 2011, EUR 45 million (EUR 45 million) was paid in bonuses. Additionally, certain key persons at Metso were paid a share incentive, the value of which at the time of payment was about EUR 3 million.

Indirect employee costs include payments related to pension insurance, social security, and unemployment and disability insurance based on the wages and salaries paid. Indirect employee costs depend on the scope of operations and the number of employees. In 2011, our indirect employee costs were EUR 347 million (EUR 319 million).

We monitor trends in base salary levels in comparable industries in each country.
Our personnel increased 6% from December 2010. The personnel increased both in the developed as well as emerging countries, and the share of emerging countries of our personnel remained at 34%. Of our personnel, 52 percent (54%) work in EU countries and 29 percent (27%) in non-OECD countries.