Principles of remuneration

Fees payable to Board members are determined annually by the Annual General Meeting. Board members who are also employees of the Company receive no Board fees. No specific fees are payable for work in the committees other than the standard Board fee.

Remuneration to the Board and senior management in 2015:

Name Basic salary/Board fees Variable remuneration Other benefits Pension costs Share based payment Total
Parent Company            
Chairman of the Board, Jan Svensson 0.5         0.5
Board Member, Eric Douglas 0.4         0.4
Board Member, Cecilia Fasth 0.2         0.2
Board Member, Björn Karlsson 0.2         0.2
Board Member, Catherina Fored 0.2         0.2
Board Member, Fredrik Palmstierna 0.2         0.2
President and CEO 4.2 2.0 0.1 1.5 4.4 12.2
Other senior management (3 individuals) 6.9 2.7 0.1 1.2 1.3 12.2
  12.8 4.7 0.2 2.7 5.7 26.1
Other senior management (3 individuals) 3.3 1.2 0.2 1.0 1.7 7.4
Group 16.1 5.9 0.4 3.7 7.4 33.5
Remuneration to the Board of Directors was determined at the 2016 AGM.Remuneration to the Board of Directors was determined at the 2016 AGM. No additional remuneration has been paid to the Board of Directors, with the exception of remuneration for travel expenses. Other senior management refers to the Group management and those individuals responsible for the various business areas. Other benefits refer to company cars.

Remuneration policy

Remuneration to the CEO is determined by the Board on the basis of proposals made by the Remuneration Committee. Remuneration to other senior management has been approved by the Remuneration Committee following proposals from the CEO.

Remuneration to the CEO and other senior management consists of basic salary, variable remuneration, company car benefits and pensions. The balance between basic salary and variable remuneration is to be in proportion to the employee’s responsibilities and authority.

For the CEO, annual variable remuneration is maximised at the equivalent of 50 per cent of fixed salary. The variable salary is based on the Group’s earnings per share. In addition to the annual bonus, the CEO is covered by the performance-based share-savings plan described below.

For other senior management, annual variable remuneration is capped at 30–40 per cent of basic salary. Variable remuneration is typically based on improvement, compared to the previous year, in terms of each individual’s respective responsibility for operating profit, the Group’s earnings per share and the outcome of individual activity plans.