Company management refers to the Chief Executive Officer and other members of Group management. The Board of Directors as a whole, with the exception of the Chief Executive Officer, is responsible for establishing the principles governing the remuneration and other employment terms and conditions for company management, as well as for making decisions pertaining to the Chief Executive Officer’s remuneration and other employment terms and conditions.
The Annual General Meeting has approved the following principles governing the remuneration and other employment terms and conditions applying for company management:
Remuneration should be market-based and competitive. Responsibilities and executed performance that are in the interest of the shareholders must be reflected in the remuneration.
Fixed salary should be reviewed annually. In addition to fixed salary, remuneration may be paid for target-related performance. Such remuneration shall depend on the extent to which pre-defined targets have been achieved within the framework of the company’s activities.
The targets comprise financial as well as non-financial criteria. Any remuneration in addition to the fixed salary shall be subject to a ceiling and related to the fixed salary. Variable remuneration is limited to a maximum of three (3) monthly salaries. Variable remuneration to company management must not exceed a maximum total annual cost for the company of SEK 3.3m (excluding social security fees), calculated on the basis of the number of persons who currently constitute senior executives. Any other benefits shall constitute only a limited part of the total remuneration.
The company has a profit-sharing fund covering all employees of the company. Allocations to the profit-sharing fund are to be based on the achieved return on equity and be subject to a ceiling of one (1) base amount per year per employee.
The retirement age is 65. Pension benefits are to be equivalent to the ITP supplementary pension plan, or be contribution-based with a maximum contribution of 35 per cent of pensionable salary. Termination salary and severance pay must not exceed 24 months in total.