Remuneration to Senior Executives
The Remuneration Committee is appointed yearly by the Board of Directors. The Remuneration Committee prepares the Board of Director's decisions on remuneration for the Chief Executive Officer and takes decisions on remuneration to other members of management. The remuneration Committee also consults on proposals regarding potential incentive plans. Guidelines for remuneration to senior executives for the fiscal year are determined by the AGM in April.
Guidelines for remuneration to Senior Executives,
adopted by the AGM 2018
Total remuneration covers basic salary and variable remuneration, consisting of a yearly and a long-term portion. Pension and other customary benefits are additional. The variable component is based on the satisfaction of predetermined targets. These targets relate to the company’s profit performance and other important change targets. For the CEO and other senior executives, the annual variable component may amount to a maximum of six months’ salary.
If the CEO’s employment is terminated by the company, the CEO has an 18-month notice period. No other dismissal pay has been agreed. If termination of other senior executives’ employment is from the company’s side, and the termination is not due to gross negligence, a maximum notice period of 12 months is agreed.
The Board is proposing the implementation of a share-based incentive plan for the CEO, senior executives and a further number of key individuals within the Group. The plan will measure performance in 2018, but has a three-year term, with participants in the plan undertaking to acquire shares in the company themselves, to receive what are termed performance shares on satisfying or exceeding performance targets in 2018.