Corporate governance

Good governance at Varma

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

Varma in brief

Varma provides pension insurance for work carried out in Finland. Varma is a mutual company, owned by its client companies and self-employed persons, insured employees and owners of the guarantee capital.

Varma’s core task is to secure pensions. We take care of the statutory pension cover of private entrepreneurs and employees. Companies take out TyEL insurance for their employees, while entrepreneurs insure themselves through YEL insurance. We invest the assets collected as pension contributions profitably and securely for current and future pensions.

Our services in workability management and rehabilitation help client companies to save in pension and sick-leave costs. We also let office space and flats and provide financing for companies.

Varma is a mutual company, owned by its client companies and self-employed persons, insured employees and owners of the guarantee capital.

Corporate governance structure

Read more about governance

Corporate Governance Report (pdf)

Salary and remuneration statement  (pdf)

Articles of Association (pdf)

Insider Management

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.

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

Register principles

By decision of Varma’s Board of Directors on 16 November 2012, the company maintains an internal related party register, which includes the members of the Board of Directors, the President & CEO, and other members of Varma’s Executive Group. As of 1 January 2015, the register also covers members of the Supervisory Board.

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.