Guidelines for remuneration to senior officers
The guidelines follow in essence the principles used up to this point. Senior officers are the persons that, together with the CEO, form Executive Management. Guidelines will be applicable for contracts of employment signed after the AGM decision on guidelines and for those cases in which alterations are made in existing contracts after the AGM decision.
Elanders offers total compensation on par with market levels so that the company can recruit and keep qualified senior officers. Remuneration to senior officers consists of a basic wage, variable remuneration, other benefits and a pension.
Basic wage
The basic wage takes into consideration the individual’s responsibility and experience.
Variable remuneration
The division between basic wage and variable remuneration is in proportion to the officer’s responsibility and authority. The variable remuneration is based on results in relationship to individual targets. The variable remuneration for the CEO may amount to, at most, 50 percent of his/her basic wage. For other senior officers variable remuneration may amount to, at most, 40 percent of his/her basic wage.
Other benefits
Senior officers have the right to other customary benefits such as a company car, occupational health care, etc.
Pension Pension provisions may not exceed 35 percent of the salary pension or, in certain cases, may be no higher than the cost of ITP together with general pension charge as stated by the law, or the equivalent. The Board has the right to renew the guidelines for existing pension agreements with essentially the same terms. The salary pension is based on is the basic wage and an average of the last three years’ variable remuneration.
Severance pay etc.
The period of notice for termination of the Chief Executive Officer by the company is 18 months. The period of notice from the Chief Executive Officer is 6 months. The period of notice for termination of other senior officers by the company normally varies between 3 to 18 months. Normal wages are paid during the period of notice. Severance is not paid.
Deviation from guidelines
The Board has the right to deviate from the above mentioned guidelines in individual cases when it is considered necessary.
Previously decided remunerations
There are no previously decided remunerations that have not become due.
Adopted at the Annual General Meeting 3 May 2012.
Last updated:
5/3/2012
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