What is the difference between a state-owned company and an associated company?

State-owned companies are companies in which the State holds the majority of shares (at least 50.1 %). Associated companies are companies in which the State holds 10–50.1% of the votes. However, a company may be designated as an associated company by a decree issued by the Government, even if the State’s voting rights fall short of 10%.

How is the administration of state-owned companies organised?

Ownership steering in respect of companies in which the State holds direct interest is exercised by the Ownership Steering Department in the Prime Minister’s Office, which is also responsible for the preparation and implementation of the state ownership policies. Additionally, the Ownership Steering Department is responsible for shareholder control in respect of Solidium, which oversees the special assignment companies. Ownership steering responsibilities in respect of the other special assignment companies are divided between seven ministries.

How are the proceeds from the sale of state-owned corporate assets used?

According to the present Government Programme, the proceeds from the sale of state assets are primarily to be used for the repayment of central government debt. Up to 25%, but no more than EUR 150 million of any annual revenues exceeding EUR 400 million, may be used for projects designed to strengthen the economy and promote growth.

Which state-owned and associated companies have a supervisory board?

A total of nine companies in which the State holds a majority interest have supervisory boards. They are Alko Inc.; Finnish Fund for Industrial Cooperation Ltd; Finnvera plc; Itella Corporation; Kemijoki Oy; Vapo Oy; Oy Veikkaus Ab; VR-Group Ltd; and Yleisradio Oy (Finnish Broadcasting Company YLE). Additionally, one associated company, Gasum Corporation, has a supervisory board.

How many state-owned companies are there in Finland?

The State holds interests in 69 major companies. Of these, the State owns shares in 12 companies (Elisa, Kemira, Metso, Outokumpu, Outotec, SSAB, Sampo, Stora Enso, Talvivaara Mining Company, TeliaSonera, Tieto and Valmet) through its wholly owned holding company Solidium Oy.

Which state-owned and associated companies are listed?

The State has direct holdings in three listed companies: Finnair Plc, Fortum Corporation and Neste Corporation. Additionally, the State holds interest indirectly through Solidium in 12 associated companies: Elisa Corporation; Kemira Oyj; Metso Corporation; Outokumpu Oyj; Outotec Oyj; SSAB; Sampo Group; Stora Enso Oyj; Talvivaara Mining Company Plc, TeliaSonera AB; Tieto Corporation, and Valmet Corporation.

Does the State publish information on the remuneration practices of state-owned companies?

No. As of autumn 2017, the Ownership Steering Department does not publish information on the remuneration policies of state-owned companies. The EU Shareholder Rights Directive and the Government Resolution on Ownership Policy (8 April 2020) further strengthen the obligation of the boards of directors of companies to disclose information on their remuneration practices. Therefore, it is not justified for an individual shareholder to disclose this information separately. In line with the Government Resolution on Ownership Steering, the state owner expects the boards of directors of companies to describe their company-specific remuneration policies a their general meetings and to justify the managing director’s actualised performance bonus and the performance bonus of the management group as a whole.

Frequently asked questions

State-owned companies are companies in which the State holds the majority of shares (at least 50.1 %). Associated companies are companies in which the State holds 10–50.1% of the votes. However, a company may be designated as an associated company by a decree issued by the Government, even if the State’s voting rights fall short of 10%.
Ownership steering in respect of companies in which the State holds direct interest is exercised by the Ownership Steering Department in the Prime Minister’s Office, which is also responsible for the preparation and implementation of the state ownership policies. Additionally, the Ownership Steering Department is responsible for shareholder control in respect of Solidium, which oversees the special assignment companies. Ownership steering responsibilities in respect of the other special assignment companies are divided between seven ministries.
According to the present Government Programme, the proceeds from the sale of state assets are primarily to be used for the repayment of central government debt. Up to 25%, but no more than EUR 150 million of any annual revenues exceeding EUR 400 million, may be used for projects designed to strengthen the economy and promote growth.
A total of nine companies in which the State holds a majority interest have supervisory boards. They are Alko Inc.; Finnish Fund for Industrial Cooperation Ltd; Finnvera plc; Itella Corporation; Kemijoki Oy; Vapo Oy; Oy Veikkaus Ab; VR-Group Ltd; and Yleisradio Oy (Finnish Broadcasting Company YLE). Additionally, one associated company, Gasum Corporation, has a supervisory board.
The State has direct holdings in three listed companies: Finnair Plc, Fortum Corporation and Neste Corporation.

Additionally, the State holds interest indirectly through Solidium in 12 associated companies: Elisa Corporation; Kemira Oyj; Metso Corporation; Outokumpu Oyj; Outotec Oyj; SSAB; Sampo Group; Stora Enso Oyj; Talvivaara Mining Company Plc, TeliaSonera AB; Tieto Corporation, and Valmet Corporation.
No. As of autumn 2017, the Ownership Steering Department does not publish information on the remuneration policies of state-owned companies. The EU Shareholder Rights Directive and the Government Resolution on Ownership Policy (8 April 2020) further strengthen the obligation of the boards of directors of companies to disclose information on their remuneration practices. Therefore, it is not justified for an individual shareholder to disclose this information separately.

In line with the Government Resolution on Ownership Steering, the state owner expects the boards of directors of companies to describe their company-specific remuneration policies a their general meetings and to justify the managing director’s actualised performance bonus and the performance bonus of the management group as a whole.