I live outside Finland today, but I return often enough to sense when something shifts. Distance sharpens perception. You don’t just see statistics, you feel the atmosphere. The rhythm of the streets. The tone of conversations. The energy, or the lack of it.

Before the pandemic, the mindset felt aligned with the rest of Europe, outward-looking, confident, forward-moving. But we never fully rose from it. It’s as if the record stopped, and no one restarted the music. Feels like we have never really returned to the same drive as the other countries.

The question is why.

The diagnosis we avoid

We often explain slow growth through productivity gaps, demographic headwinds, and geopolitical uncertainty. All of these factors matter. But they are not the core constraint.

Finland’s growth problem is not the absence of capital overall, but the weakness of private capital formation.

By capital formation, I mean the process through which private wealth accumulates, remains invested, and compounds within domestic companies over time. Growth requires capital that is not merely consumed or redistributed, but reinvested, repeatedly, into productive risk.

Growth requires compounding capital

Sustained economic expansion depends on one structural dynamic: capital must accumulate, compound, and reallocate toward higher-return opportunities. 

Whether one looks at Sweden’s long-term family-owned industrial groups, Denmark’s pension-fund-backed global companies, and Israel’s reinvestment of tech exits, all show the same pattern: capital that stays close to companies and compounds over time tends to generate repeated growth waves. The common denominator is not only innovation or education. It is the ability of private capital to build up over time and then redeploy into productive risk-taking.

Capital that compounds inside companies strengthens balance sheets, enables acquisitions, finances international expansion, and funds experimentation. Over the decades, it creates new growth waves.

Finland has many strengths. We have a highly educated population, deep technical competence, strong institutions, legal predictability, and social trust that is the envy of many countries. But when it comes to private capital accumulation at scale, we are unfortunately structurally thin.

The structure of Finnish capital

A significant portion of Finland’s wealth is collectively managed through the state, municipalities, and pension funds. These capital pools are stable and important. Yet their mandate is preservation and long-term stability, not aggressive expansion or asymmetric risk-taking.

Private capital behaves differently. It tolerates volatility. It seeks outsized returns. It backs founders. It compounds inside companies over generations and creates reinvestment dynasties. That dynamism fuels structural growth. Yet, this layer of capital is comparatively narrow in Finland.

The inheritance tax example

The inheritance tax debate illustrates the challenge. In Finland, the discussion quickly becomes moral, centered on fairness, redistribution, or privilege. Yet the economic mechanism is rarely examined in detail.

In some cases, inheritance tax obligations can lead long-term owners to extract dividends primarily to meet tax liabilities; capital is removed from the company rather than allowed to compound inside it. Family-owned businesses may distribute profits for years to finance tax payments. This weakens balance sheets, reduces reinvestment capacity, limits acquisitions, and discourages consolidation.

The question is not whether wealth should be taxed. The question is whether taxation structures support or suppress long-term capital accumulation.

There are pragmatic alternatives. Tax obligations could be deferred while ownership remains unchanged. Taxation could be postponed if proceeds are reinvested in productive assets. Incentives could reward domestic reinvestment rather than encourage liquidation.

Capital as economic infrastructure

We have invested heavily in transport networks, digital infrastructure, and energy grids because we understand they enable growth. Capital accumulation should be treated with the same seriousness. In a modern economy, capital is infrastructure. Without current flowing through it, productivity stalls. 

Finland does not lack intelligence or stability. What it lacks is sufficient domestic capital accumulation and compounding at scale.

If we want stronger companies, more scaling success stories, and higher long-term living standards, we must treat capital accumulation not as a suspicious byproduct of success, but as a necessary condition for it.

We need domestic capital cycles that repeatedly finance industrial renewal, technological innovation, and entrepreneurial experimentation. Growth does not depend on a single national champion. It emerges when thousands of companies, from advanced manufacturing to software, from energy solutions to consumer brands, have access to risk capital at multiple stages of development.

That requires wealth that is allowed to accumulate, remain invested, and seek productive returns over time.

Finland has faced far worse than today’s slowdown. The early 1990s were a true national shock, and the country rebuilt. Capitalism does not move in straight lines; it moves in waves, with downturns and recoveries. The question is whether a country has the flexibility to renew itself before renewal becomes unavoidable.

The question is straightforward: Do we want capital to compound here or somewhere else? If the answer is here, then Finland must aim to be the most attractive small economy in which to incorporate, build, and scale a business. 

Let’s not tax our private capital to extinction or exile. This can be done without losing tax income. Quite the opposite will happen, as we can see from e.g. Sweden.

|

Voices

Letting private capital compound will save both Finland's economy and budget

Letting private capital compound will save both Finland's economy and budget

·

5 min read

I live outside Finland today, but I return often enough to sense when something shifts. Distance sharpens perception. You don’t just see statistics, you feel the atmosphere. The rhythm of the streets. The tone of conversations. The energy, or the lack of it.

Before the pandemic, the mindset felt aligned with the rest of Europe, outward-looking, confident, forward-moving. But we never fully rose from it. It’s as if the record stopped, and no one restarted the music. Feels like we have never really returned to the same drive as the other countries.

The question is why.

The diagnosis we avoid

We often explain slow growth through productivity gaps, demographic headwinds, and geopolitical uncertainty. All of these factors matter. But they are not the core constraint.

Finland’s growth problem is not the absence of capital overall, but the weakness of private capital formation.

By capital formation, I mean the process through which private wealth accumulates, remains invested, and compounds within domestic companies over time. Growth requires capital that is not merely consumed or redistributed, but reinvested, repeatedly, into productive risk.

Growth requires compounding capital

Sustained economic expansion depends on one structural dynamic: capital must accumulate, compound, and reallocate toward higher-return opportunities. 

Whether one looks at Sweden’s long-term family-owned industrial groups, Denmark’s pension-fund-backed global companies, and Israel’s reinvestment of tech exits, all show the same pattern: capital that stays close to companies and compounds over time tends to generate repeated growth waves. The common denominator is not only innovation or education. It is the ability of private capital to build up over time and then redeploy into productive risk-taking.

Capital that compounds inside companies strengthens balance sheets, enables acquisitions, finances international expansion, and funds experimentation. Over the decades, it creates new growth waves.

Finland has many strengths. We have a highly educated population, deep technical competence, strong institutions, legal predictability, and social trust that is the envy of many countries. But when it comes to private capital accumulation at scale, we are unfortunately structurally thin.

The structure of Finnish capital

A significant portion of Finland’s wealth is collectively managed through the state, municipalities, and pension funds. These capital pools are stable and important. Yet their mandate is preservation and long-term stability, not aggressive expansion or asymmetric risk-taking.

Private capital behaves differently. It tolerates volatility. It seeks outsized returns. It backs founders. It compounds inside companies over generations and creates reinvestment dynasties. That dynamism fuels structural growth. Yet, this layer of capital is comparatively narrow in Finland.

The inheritance tax example

The inheritance tax debate illustrates the challenge. In Finland, the discussion quickly becomes moral, centered on fairness, redistribution, or privilege. Yet the economic mechanism is rarely examined in detail.

In some cases, inheritance tax obligations can lead long-term owners to extract dividends primarily to meet tax liabilities; capital is removed from the company rather than allowed to compound inside it. Family-owned businesses may distribute profits for years to finance tax payments. This weakens balance sheets, reduces reinvestment capacity, limits acquisitions, and discourages consolidation.

The question is not whether wealth should be taxed. The question is whether taxation structures support or suppress long-term capital accumulation.

There are pragmatic alternatives. Tax obligations could be deferred while ownership remains unchanged. Taxation could be postponed if proceeds are reinvested in productive assets. Incentives could reward domestic reinvestment rather than encourage liquidation.

Capital as economic infrastructure

We have invested heavily in transport networks, digital infrastructure, and energy grids because we understand they enable growth. Capital accumulation should be treated with the same seriousness. In a modern economy, capital is infrastructure. Without current flowing through it, productivity stalls. 

Finland does not lack intelligence or stability. What it lacks is sufficient domestic capital accumulation and compounding at scale.

If we want stronger companies, more scaling success stories, and higher long-term living standards, we must treat capital accumulation not as a suspicious byproduct of success, but as a necessary condition for it.

We need domestic capital cycles that repeatedly finance industrial renewal, technological innovation, and entrepreneurial experimentation. Growth does not depend on a single national champion. It emerges when thousands of companies, from advanced manufacturing to software, from energy solutions to consumer brands, have access to risk capital at multiple stages of development.

That requires wealth that is allowed to accumulate, remain invested, and seek productive returns over time.

Finland has faced far worse than today’s slowdown. The early 1990s were a true national shock, and the country rebuilt. Capitalism does not move in straight lines; it moves in waves, with downturns and recoveries. The question is whether a country has the flexibility to renew itself before renewal becomes unavoidable.

The question is straightforward: Do we want capital to compound here or somewhere else? If the answer is here, then Finland must aim to be the most attractive small economy in which to incorporate, build, and scale a business. 

Let’s not tax our private capital to extinction or exile. This can be done without losing tax income. Quite the opposite will happen, as we can see from e.g. Sweden.

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Authors

Peter Seligson is a Finnish investor and business leader with a long career spanning investment banking, asset management, and the forest industry. He currently serves as executive chairman of A. Ahlström Oy and previously held leadership roles, including CEO of Ahlström Invest and Partner at Seligson & Co. Over the course of his career, Seligson has combined strategic thinking with hands-on execution, building and leading organizations across financial services and industrial ownership. Beyond finance, he has a strong interest in sustainable materials and advancing a more plastic-free, environmentally responsible future.

Peter Seligson is a Finnish investor and business leader with a long career spanning investment banking, asset management, and the forest industry. He currently serves as executive chairman of A. Ahlström Oy and previously held leadership roles, including CEO of Ahlström Invest and Partner at Seligson & Co. Over the course of his career, Seligson has combined strategic thinking with hands-on execution, building and leading organizations across financial services and industrial ownership. Beyond finance, he has a strong interest in sustainable materials and advancing a more plastic-free, environmentally responsible future.

Authors

Guest writer

Peter Seligson is a Finnish investor and business leader with a long career spanning investment banking, asset management, and the forest industry. He currently serves as executive chairman of A. Ahlström Oy and previously held leadership roles, including CEO of Ahlström Invest and Partner at Seligson & Co. Over the course of his career, Seligson has combined strategic thinking with hands-on execution, building and leading organizations across financial services and industrial ownership. Beyond finance, he has a strong interest in sustainable materials and advancing a more plastic-free, environmentally responsible future.

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Executive Intelligence

Helsinki's boards run 270 committees under 60 different names

Sep 1, 2026

Around forty of those names belong to a single company each. Citycon has the only cyber committee on the exchange, and last year it did not meet.

Citycon's board has a Cyber Committee. It is the only one on Nasdaq Helsinki. The company's own governance disclosure records that in 2025, the Cyber Committee did not convene. Its Audit and Governance Committee met four times that year. Its Nomination and Remuneration Committee met seven.

A cyber committee is a defensible answer to a real exposure for a listed property owner. What stands out is that no other Helsinki-listed board has formalised the same risk in the same way, or in many cases at all.

35+ committee names belong to a single company each

Citycon is not the only board with a committee nobody else has. Raisio established an M&A Committee at its 2025 annual general meeting, chaired by board chair Arto Tiitinen. Orion runs an R&D Committee, chaired by Hilpi Rautelin, the only one of its kind in the Finnish listed market. Revenio has an Integration Committee. GRK Infra has a Tender and Project Committee. HKFoods runs a Working Committee and a Special Committee. Fortum has folded technology and investment into one body, and YIT has done the same with investment and projects.

Audit and remuneration still do almost all of the work

Across 184 Helsinki-listed companies, 127 have at least one board committee. Fifty-seven have none. Those 127 boards run 270 committees between them.

The functions concentrate tightly. Audit appears in 122 committee mandates, remuneration in 71, and people, personnel or human resources in 59. Nomination or governance appears in 26, sustainability in 14, risk in 13.

Another 11 committees use "Compensation" instead of remuneration, so a body explicitly charged with pay appears in 82 of the 270 — and that still excludes the 17 Personnel, People and Human Resources committees holding the same mandate without naming pay.

The names do not concentrate at all. After normalising for capitalisation and ampersands, those 270 committees carry 60 distinct labels, and 38 of them are used by exactly one company.

Most of that variety is cosmetic. People and Sustainability. Sustainability and Personnel. Sustainability and HR. Remuneration and HR. HR and Compensation. People and Compensation. Human Resources and Remuneration. Seven labels, one mandate.

The Code mandates the function, not the label

None of this is a compliance failure. The Finnish Corporate Governance Code 2026 is explicit: "Companies do not have an obligation under the Corporate Governance Code to establish committees or a shareholders' nomination board. As the establishment of the committees is not obligatory, the lack of committees is not deemed to be a departure from the code and therefore there is no need to report or explain it."

The Code also lets boards merge mandates, stating that "the board of directors may combine duties of the committees referred to in the Corporate Governance Code into a single committee or also establish other permanent or temporary committees, combine the duties assigned to different committees, or decide that a certain matter be prepared by the entire board of directors ". It requires only that the statutory audit duties sit somewhere, whether in a dedicated audit committee, in another committee, or with the board as a whole.

Committee data does not aggregate across Helsinki

For a board, a specialist committee is a statement about where directors spend their hours. Orion formalising research and development, and Nokia formalising both technology and strategy, tell a reader something that the committee list in an annual report otherwise flattens.

For anyone reading across the market, the absence of a shared vocabulary is the cost. Screening Nasdaq Helsinki for boards with a technology committee returns no reliable answer. Nokia, Kalmar, Kempower and Revenio call it Technology. Fortum calls it Technology and Investment. Sotkamo Silver calls it Technical. Citycon has carved cyber out on its own. (That reading is interpretation. It is a comparability problem for investors and index work, not a governance failing at any individual company.)

Worth watching is whether specialist committees spread beyond the handful of boards that run them. Technology-type committees number seven across the market. Cyber committees number one, and last year it did not meet.

Market Signals

OP Pohjola's best dividend payers on the Helsinki exchange, forecasts through 2028

Aug 31, 2026

Finnish companies under OP Pohjola's equity research coverage are set to offer an average dividend yield of roughly 6.5 per cent for the 2026 financial year, according to a review published by OP Media on 28 August 2026. For many names on the list, the forecast yield keeps rising through 2027 and 2028.

The top of the list is dominated by Mandatum, with a forecast dividend yield of 12.8 per cent for 2026, settling to 8.0 per cent in both 2027 and 2028. Terveystalo follows at 8.2 per cent for 2026 and 2027, climbing to 10.2 per cent by 2028, then Anora (7.8% → 9.1% → 9.1%) and HKFoods (7.5% → 8.7% → 9.9%).

OP Pohjola's dividend yield forecasts, 2026e–2028e

Company

2026e

2027e

2028e

Mandatum

12.8%

8.0%

8.0%

Terveystalo

8.2%

8.2%

10.2%

Anora

7.8%

9.1%

9.1%

HKFoods

7.5%

8.7%

9.9%

Elisa

6.8%

6.9%

7.1%

Aktia

6.5%

6.7%

6.7%

eQ

6.5%

7.1%

7.1%

Enento

6.4%

6.4%

6.4%

UPM-Kymmene

6.3%

6.3%

6.3%

Pihlajalinna

6.2%

7.2%

8.1%

Fiskars

6.2%

6.2%

6.5%

Raisio

6.0%

6.4%

6.4%

Lassila & Tikanoja

5.9%

6.4%

7.1%

Nordea

5.7%

6.0%

6.1%

Atria

5.3%

5.6%

5.9%

Marimekko

5.3%

5.8%

6.3%

Valmet

5.2%

5.6%

5.6%

Tokmanni

5.0%

5.7%

6.4%

Nurminen Logistics

5.0%

5.0%

6.7%

Telia

4.8%

5.1%

5.3%

Yield alone is not the point

OP Pohjola's Chief Analyst Antti Saari cautions against reading a single year's percentage as a verdict on a dividend stock.

"For a long-term investor, what matters is not just this year's dividend, but how the dividend develops in the future and what the company's outlook is otherwise. It is never a good idea to base an investment decision solely on a single year's dividend yield"

The article's argument is that a high headline yield can mislead: dividend growth, whether earnings actually cover the payout, and the company's broader business outlook say more than one year's figure.

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