Remuneration of senior executives
The Annual General Meeting 2016 established guidelines for remuneration to senior executives in accordance with the Board’s proposal.The guidelines encompass Group Management, including the President. Remuneration is determined by the Board’s Remuneration Committee. However, remuneration of the President is determined by the Board in its entirety.
The distribution between basic salary and variable remuneration is to be proportionate to the senior executive’s responsibilities and authorities. The short-term variable remuneration for other senior executives is based on the Group’s earnings and on individual qualitative parameters and can amount to a maximum of a certain percentage of the fixed annual salary. The percentage is linked to the position of each individual and varies between 33 and 60 percentage points for members of Group Management. Other benefits refer primarily to company cars. Pension premiums are paid to an amount that is based on the ITP plan or a corresponding system for employees outside Sweden. Pensionable salary comprises basic salary. The period of notice is 12 months if employment is terminated by the company, and six months if terminated by the employee. Severance pay for termination on the part of the company may amount to a maximum of one annual salary.
In addition, the Annual meeting adopted a new long-term variable compensation program which shall be calculated on the Group´s results f0r the financial years 2016 – 2018. For the period, the company´s total cost for the long-term program shall not exceed 32 million. Group Management and a number of selected senior executives vital to the business may receive long-term variable remuneration from the company.
The previous compensation program period for the years 2014 – 2016 is repealed. Any payments based on this program has not been made.
The Board has not decided on any other share or share-price based incentive programs for Group Management.