Risto Murto appointed President and CEO of Varma

In its meeting held 22 August 2013, Varma Mutual Pension Insurance Company’s Board of Directors appointed PhD Econ. Risto Murto, 50, as the company’s new President & CEO. Murto will take over as President & CEO as of 1 January 2014.

In accordance with his contract, current President & CEO Matti Vuoria, 62, will carry out his tasks until 31 December 2013. Vuoria will retire in March 2014, when he turns 63.

Risto Murto is currently Varma’s Deputy CEO, and is a member of the Executive Group, serving as Vice-President of Investments. Murto joined Varma in 2006. Prior to that, he was Managing Director and a Director at Opstock Ltd during the years 1997 to 2005.

“Risto Murto has an extensive background and strong competence in matters concerning the international economy as well as in managing the assets of a pension company. A key issue for the pension system, both now and in future, is the success of investment operations,” says Sakari Tamminen, Chairman of Varma’s Board of Directors. The Board of Directors believes that under Murto’s leadership Varma will be in a good position to continue with its strategy of strengthening its solvency and continuously improving its operations, not to mention reinforcing its position as the leader in overseeing its customers’ pension matters.

“It gives me great pleasure to be able to continue working with the experts at Varma. Our day-to-day work will focus on efficiency, customer service and profitable investment operations. Varma is a solid and solvent part of the Finnish earnings-related pension scheme,” says Murto.

Varma Mutual Pension Insurance Company is the largest earnings-related pension insurer and private investor in Finland. The company is responsible for the statutory earnings-related pension cover of more than 870,000 people in the private sector. Premiums written totalled EUR 4.2 billion in 2012 and pension payments stood at EUR 4.5 billion. Varma’s investment portfolio amounted to EUR 36.0 billion at the end of June 2013.

For more information, please contact:

Sakari Tamminen, Chairman of Varma’s Board of Directors, tel. +358 20 592 9075

Attachments:

Risto Murto’s curriculum vitae

Remuneration of the President & CEO

A photo of Risto Murto is also available on Varma’s website, at www.varma.fi > About Varma > Media services > Image bank

ATTACHMENT: CURRICULUM VITAE

Risto Fredrik Murto

Born                                     1963, Kuusamo, Finland

Education                            PhD Econ. (1997), Helsinki School of Economics

                                            MSc Econ. (1992), University of Oulu

Current position                  Varma Mutual Pension Insurance Company

                                            Deputy CEO 2013–

                                            Executive Vice-President 2010–

                                            Senior Vice-President, Chief Investment Officer 2006–2010

Work experience                 Opstock Ltd

                                            Managing Director 2000–2005

                                            Head of Equities and Research, 1997–2000

                                            Erik Selin Ltd. (now Carnegie)

                                            Head of Research 1993–1997

                                            Bank of Finland

                                            Economist, Financial Markets Department 1992–1993

                                            ETLA, Research Institute of the Finnish Economy

                                            Research Fellow 1987–1992

Positions of Trust                 Nokian Tyres plc, member of the Board 2012–

                                            VVO Group plc, Vice Chairman of the Board (current) 2006–

                                            NV Kiinteistösijoitus Oy, Chairman of the Board (current) 2006–

                                            VVT Kiinteistösijoitus Oy, Chairman of the Board (current) 2012

                                            Kaleva Mutual Insurance Company, Vice Chairman of the Board (current) 2010–

                                           Member or Chairman of the nomination committees of several listed companies in Finland

ATTACHMENT: REMUNERATION OF THE PRESIDENT & CEO

Remuneration for Risto Murto, who shall assume the position of President & CEO on 1 January 2014, is based on the following components:

•  A fixed monthly salary of EUR 43,000.
• The President & CEO is covered by long-term and short-term incentive schemes. The maximum bonus received under these schemes cannot exceed 12 months’ salary.
• The President & CEO is entitled to the unlimited company car benefit, the tax value of which is deducted from his salary.
•  The President & CEO’s contract does not include a housing benefit.
•  The President & CEO’s retirement age is 63 years and his pension benefits under supplementary pension insurance will be 60 per cent of the pensionable salary of the supplementary pension. Murto’s retirement age under the previous employment contract was 62 years.
•  The President & CEO has a period of notice of six months, in addition to which he is entitled to severance pay amounting to six months’ salary.