Remuneration 2025

Remuneration policy

The Chairman of the Board and Board members receive Board fees in accor dance with the resolutions of the AGM. Remuneration is not paid to members of the Board employed within the Group. 

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 30–50 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.

Pensions

The retirement age of the CEO and other senior management is 65. Defined contribution pension insurance corresponding to 35 per cent of the fixed annual salary is paid for the CEO. Pension benefits for other senior management are paid within the framework of the applicable ITP supplementary pension plan.

Severance Pay

For the CEO, the notice period for termination of employment is 12 months if termination is initiated by the company and six months if initiated by the CEO. If termination is initiated by the company without reason for termination, the CEO is entitled to severance pay corresponding to 12 months’ salary. Severance pay is deducted against other earned income.

For other senior management, the notice period is 3–12 months if initiated by the Company, and 3–6 months if initiated by the employee. No separate agreements exist regarding retirement age, future pension or severance pay to Board members and other senior management.

Performance-based share-savings plan

The AGMs in 2012 to 2019 and in 2021 to 2025 resolved to implement a performance-based share-savings plan for the CEO, senior management and a number of key employees within the Group. In the most recent plan for parent company, 2025, a total of 17 people were offered the opportunity to participate, of which 13 accepted.

Participation in the plan requires a personal investment in Fagerhult Group shares. Under normal circumstances, following a three-year vesting period, a cost-free allocation of shares in Fagerhult Group can be made to the participants, provided that certain conditions are met.

In order for the share awards to be eligible for the allotment of shares, participants are required to remain in employment within the Group and to retain their entire investment in Fagerhult Group shares acquired within the framework of the plan during the vesting period. The allocated share awards (known as performance share awards) also require meeting a financial performance target related to Fagerhult Group’s average earnings per share. 

The 2022 plan was concluded in 2025. The conditions for the performance share awards pertaining to average earnings per share for 2022–2025 were not met and therefore no shares were allocated to the participants. 

For the remaining plans (2023, 2024 and 2025), in accordance with the conditions for the plans, the remaining participants have acquired a total of around 120,227 shares in Fagerhult Group. A total of approximately 480,908 share awards have been allocated to plan participants, of which 71,400 to the CEO and 204,524 to other senior management. 

For the 2025 plan, the financial performance target pertains to average earnings per share for the 2025–2027 financial years. A maximum of about 187,248 shares can be allocated as part of the 2025 plan. The valuation of the allocated share awards is based on the market price of the share at the time of allotment, with a deduction for the lack of dividend.

For the 2024 plan, the financial performance target pertains to average earnings per share for the 2024–2026 financial years. A maximum of about 95,052 shares can be allocated as part of the 2024 plan. The valuation of the allocated share awards is based on the market price of the share at the time of allotment, with a deduction for the lack of dividend. For the 2023 plan, the financial performance target pertains to average earnings per share for the 2023–2025 financial years. A maximum of about 235,980 shares can be allocated as part of the 2023 plan. The valuation of the allocated share awards is based on the market price of the share at the time of allotment, with a 
deduction for the lack of dividend. 

The total cost in 2025 for all share-savings plans was –0.6 (5.1) MSEK or 0.00 (0.03) SEK per share. The estimated fair value on the allocation date is 62.5 SEK for the 2024 plan and 37.4 SEK for the 2025 plan.