Stock option income of corporate executives rises again

Mikael Lilius

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Income from stock options earned by corporate executives and other key figures in large companies rose again in 2005. According to figures put out on Wednesday by the National Board of Taxes, nearly EUR 300 million in returns on stock options were paid out last year. This represents growth for a second year running.
      Income figures released on Wednesday reveal that the greatest amount of income from stock options last year was earned by Mikael Lilius, CEO of the energy company Fortum.
      Executives of Sampo Bank, Wärtsilä, and Kesko were also high on the list of stock option income.
     
Growth in income from various incentive programmes is expected to continue to grow this year as well. For instance, Lilius is expected to double his stock option earnings to EUR 8 million.
      The trend can be seen as a positive development for the majority of taxpayers, because return on stock options is taxed at a high rate - usually more than 50 percent, thus reducing the burden on other taxpayers.
      Repatriation of sales profits continued last year. Beneficiaries included fairly young entrepreneurs, such as the inventors of the virtual game Habbo Hotel who, at less than 30 years of age, sold part of their company to capital investors.
     
Not all high income-earners benefitted from stock options. Lauri Ylönen of the Finnish rock group The Rasmus saw his income rise to EUR 920,000, putting him on top of the income list for Finnish artists.
      Ylönen’s earnings were six times greater than those of Prime Minister Matti Vanhanen, whose EUR 155,000 put him at the top of the list for government ministers.


Previously in HS International Edition:
  Fortum execs maintain strong foothold at top of income list (2.11.2005)

Helsingin Sanomat