Principles for remuneration of company management


Principles for remuneration of company management

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 is to be in line with market terms and competitive. Responsibility and performances that coincide with shareholders’ interested are to be reflected in the remuneration. The fixed salary is to be re-evaluated annually. Remuneration beyond the fixed salary, which rewards target-related performances, may be paid.

Such remuneration is to be contingent on the degree to which predetermined targets were fulfilled within the framework of the company’s operations. The targets encompass both financial and non-financial criteria. Any remuneration beyond the fixed salary is to be maximised and related to the fixed salary. Variable remuneration may not exceed three (3) months’ salary. Managements’ variable remuneration may not exceed an annual cost for the company totalling SEK 2.5m (excluding social security fees), calculated on the basis of the number of individuals who currently hold executive positions.

Other benefits are to comprise a limited portion of the remuneration where applicable.


 

Page updated 10 May 2012, 10:09 am CET