Governance and organisation

The starting point for Varma’s corporate governance is the company’s core task – securing pensions. The statutory earnings-related pension scheme was created by an agreement concluded between the government and labour market organisations, and the tripartite model still plays a key role in the development of the system. Labour market organisations also participate in the administration of earnings-related pension companies.

Good governance promotes the transparency of Varma’s operations and administration, which in turn contributes to strengthening public confidence in the earnings-related pension scheme.

Varma’s governance is based on the Finnish Act on Employment Pension Insurance Companies. Varma also complies with the applicable provisions of the Finnish Corporate Governance Code.

Corporate Governance Report

Our operating principles

The Finnish Corporate Governance Code on the Securities Market Association’s website

Policyholders and the personnel employed by them (the insured) are Varma’s customers. Varma is a mutual company, owned by policyholders and insured employees. This means that the policyholders and the insured have a right to participate in decision-making at the Annual General Meeting.

The main task of the Annual General Meeting is to elect the members of the Supervisory Board and decide on their remunerations on the basis of the proposal submitted by the Election Committee.

Articles of Association

Corporate Governance Report

Statement on remuneration at Varma

Articles of Association

Positions of trust held by the members of the Board of Directors

Positions of trust held by the President & CEO and management

Investment Organisation's Positions of Trust

Varma's memberships in shareholders' nomination boards of listed companies

Varma follows Insider Guidelines confirmed by the Board of Directors. The purpose of the guidelines is to promote the public reliability of the company's investment operations and the personnel's knowledge of insider regulations, so that they are not unintentionally violated. The instructions are applied to Varma’s investment operations and employees’ personal trading in securities. The insider guidelines require advance consultation for trading in listed equities or securities entitling to listed equities by those Varma employees who are considered as permanent insiders based on their position or tasks where they regularly receive inside information.

In advance consultation the compliance officer authorises the transaction. The authorisation requires that there is no insider information at Varma concerning the listed equity in question; the compliance officer ensures this from Varma’s internal register prior to the authorisation. Permanent insiders are also prohibited from short selling.

Following a transaction carried out after the advance consultation, the permanent insider is required to notify the compliance officer of the number of securities acquired or disposed of for the purpose of maintaining Varma’s internal register.

Insider Guidelines

The data in the public insider register accessed through Euroclear Finland’s link

The company maintains an internal related party register that includes the members of the Supervisory Board and the Board of Directors, the chief auditor, the President & CEO and other members of the Executive Group, as well as the spouses and wards of these persons.

Significant trades and other transactions between Varma as a company and a registered related party must be approved by the Board of Directors before they are realised.

Related party transactions