In accordance with rule 9.1 of the Swedish Code of Corporate Governance, the Board has evaluated how the company’s guidelines for remuneration of senior executives and the variable salary system has been applied for members of Group Management during the 2010 financial year, as well as how the remuneration that was actually paid to senior executives in both current and concluded programmes of variable remuneration complied with these guidelines.
Guidelines for remuneration and other terms of employment for company management resolved at the 2010 Annual General Meeting
Remuneration shall be on market terms and competitive. Responsibility and performance that match shareholder interests shall be reflected in the remuneration. The fixed salary is to be reviewed each year. Remuneration in addition to fixed salary, which rewards goal-related performance, may be paid. Such remuneration shall depend on the extent to which the predetermined goals are met within the framework of the company’s operations. The goals comprise both financial and non-financial criteria. Any remuneration in addition to fixed salary shall be maximised and related to the fixed salary. Variable salary may not exceed three (3) monthly salaries. The variable remuneration paid to company management may not exceed an annual cost to the company totalling SEK 2.5m (excluding social security fees), calculated based on the number of persons who are currently senior executives. Other benefits, to the extent that these exist, shall comprise a limited portion of remunerations.
The company has a profit-sharing foundation that covers all employees. Allotment to the profit-sharing foundation is based on achieved return on shareholders’ equity and is maximised to one (1) base amount per year per employee.
The retirement age shall be 65. Pension benefits shall correspond to the ITP plan or on defined-contribution plans with a maximum allotment of 35 per cent of pensionable salary. Salary during periods of notice and severance pay shall combined not exceed 24 monthly salaries.
Follow-up of remuneration of senior executives:
During 2010, Group Management comprised seven persons:
- CEO
- Deputy CEO and CFO
- Director of Communications
- Director of Business Development
- Director of Transactions
- Director of Property
- Director of Project & Development
Fixed salaries paid to senior executives in Fabege are in the interval SEK 71,000-200,000 per month.
Variable salary in addition to fixed salary to senior executives is maximised to three monthly salaries. During 2010, a total of SEK 1,607,000 in variable remuneration was paid, which is within the limit guidelines.
Accordingly, the Board has concluded that all remuneration complied with the guidelines for remuneration of senior executives adopted by the Annual General Meeting.
Solna, 2 February 2011
Board of Directors