Mandatum Group (Mandatum) is consolidating its position in reward and compensation services by acquiring Nordhaven Corporate Finance’s business focussing on equity-based incentive plans. Mandatum’s objective is to strongly accelerate the growth of both Mandatum’s existing and to-be-acquired reward and compensation services and to develop the incentive offering. The acquisition strengthens Mandatum’s position as Finland’s leading provider of reward and compensation services with the largest reward and compensation offering available in the markets.
Following the acquisition, Mandatum’s Reward and Compensation Services will provide customers with even more comprehensive consulting in remuneration and reward schemes for all employees and key personnel. Mandatum’s existing offering of reward and compensation services includes, among other things, Pay Scale basic salary schemes and market pay comparisons, and personnel funds and group pension insurance as supplementary rewards.
Following the acquisition, Nordhaven’s equity-based incentive scheme specialists and accounts will transfer to a new company named Mandatum Incentives. Tapio Tolvanen (58), Master of Laws, MBA, a partner and Chairman of the Board of Directors at Nordhaven, has been appointed as the new company’s Managing Director.
“We have expanded our reward and compensation services over the years. Demand has grown, as correctly implemented reward and compensation schemes improve productivity by concretely supporting companies to achieve their financial and operational targets and by steering work in the desired direction. Adding equity-based incentive schemes to our offering is a natural step for Mandatum, and one that our customers have long been hoping for. In the future, Mandatum will be by far the largest provider of reward and compensation services with the most comprehensive portfolio in Finland,” says Mandatum Group’s CEO, Petri Niemisvirta.
“This is a transaction that adds value to both our and Mandatum’s customers. We have more than 20 years of advisory experience in designing and implementing tailored incentive schemes. Going forward, we will focus on providing financial advice on mergers and acquisitions, financing and capital structuring. The transaction also opens up several opportunities for collaboration between Mandatum and Nordhaven,” says Nordhaven Corporate Finance’s Managing Partner, Juha Raunio.
Equity-based reward schemes have traditionally been targeted at executives of listed companies, but today, both listed and unlisted companies are increasingly using equity-based incentives to motivate and retain also other key persons and the entire personnel.
“We believe that a company’s strategy implementation and value creation have the best chances of success when the interests of the shareholders, management and personnel are aligned. Equity-based long-term incentive schemes linked to strategy implementation and the increase of shareholder value are a good way to achieve this. From the company’s perspective, it is important that the overall reward and compensation system is clear and well-structured and that the variable pay components are based on performance indicators that steer work towards the shared goals while at the same time supporting the company’s strategy implementation and value growth in the long term,” says Tapio Tolvanen, Managing Director of Mandatum Incentives.
Petri Niemisvirta, CEO, firstname.lastname@example.org, tel. +358 10 516 7200
Niina Riihelä, Vice President, Marketing and Communications, email@example.com, tel. +358 40 728 1548
Nordhaven Corporate Finance
Juha Raunio, Managing Partner, firstname.lastname@example.org, tel. +358 40 570 5260
Mandatum Group consists of Mandatum Life Insurance Company Limited (Mandatum Life), Mandatum Life Services Ltd., Mandatum Asset Management Ltd and Mandatum Fund Management S.A. The Group has approximately 600 employees.
Mandatum Life offers private and corporate customers services in wealth management, rewards and personal insurance together with the other Group companies. Mandatum Incentives Ltd is Mandatum Life’s subsidiary. It designs and implements incentive, retention and reward and compensation schemes, offers related services and provides various remuneration analyses and reward and compensation policies and reports.
Nordhaven Corporate Finance
Nordhaven Corporate Finance operates as a financial advisor in mergers and acquisitions, financing and equity-based incentive schemes. The company employs 20 experienced specialists. It is the leading financial advisor in Finland, measured by the number of implemented transactions and the number of personnel. Nordhaven Corporate Finance has been a member of Clairfield International since 2012. The partnership includes more than 30 firms in 22 countries.