Guidelines for remuneration to the CEO and other senior executives
Guidelines for remuneration to the CEO and other senior executives are adopted by the annual general meeting. The annual general meeting of 21 May 2018 resolved that remuneration to the CEO and other senior executives shall comprise basic salary, variable remuneration, pensions and other remuneration. All pension benefits are defined contribution plans. Variable remuneration is prepared and approved by the board.
The allocation between basic salary and, where applicable, variable remuneration shall be in proportion to the executive’s responsibilities and authorities. The variable remuneration paid to the chief executive officer is capped at a maximum of 30 percent of annual salary. For other senior executives, the variable remuneration is capped at 0–30 percent of annual salary. The variable remuneration for the chief executive officer and other senior executives is based on the outcome of a number of quantitative parameters against set targets. The quantitative parameters relate to the company’s share price development, performance of operational management and the focus issues for each financial year.
Remuneration to the CEO and other senior executives
Remuneration to the CEO and other senior executives comprises basic salary, variable remuneration, pensions and other remuneration. All pension benefits are defined contribution plans. Variable remuneration is prepared and approved by the board. The allocation between basic salary and, where applicable, variable remuneration shall be in proportion to the executive’s responsibilities and authorities. The variable remuneration paid to the chief executive officer is capped at a maximum of 30 percent of annual salary. For other senior executives, the variable remuneration is capped at 0–30 percent of annual salary. The variable remuneration for the chief executive officer and other senior executives is based on the outcome of a number of quantitative parameters against set targets. The quantitative parameters relate to the company’s share price development, performance of operational management and the focus issues for each financial year.
The chief executive officer, Karl Tobieson, has an employment contract with a mutual six-month notice period. Following termination of employment there is a six-month non-competition clause under which the company will compensate Karl so that he receives the same salary he received at the end of employment. Other senior executives have a three-month notice period or such longer period required by law, without severance pay, or they are engaged through a consulting agreement which has a three-month notice period. The chief executive officer and other senior executives are otherwise not entitled to any compensation in connection with termination of their employment.
In 2016/2017 total remuneration to the chief executive officer and senior executives amounted to SEK 4,747 thousand (see breakdown in the table above). In addition to the above contracts, the company has entered into an agreement regarding the company’s IR manager, Johan Hähnel, that includes part-time work.
The table below presents an overview of remuneration to the CEO and other senior executives who were also engaged by the company during financial year 2017.
| SEKk | Director’s fee/basic salary/ consulting fee (ex. VAT) | Defined-contribution pension costs | Variable remuneration | Total |
| Karl Tobieson, CEO | 1,428 | 136 | – | 1,564 |
| Other senior executives (two individuals) | 1,461 | 186 | – | 1,647 |
| Total senior executives | 2,889 | 322 | – | 3,211 |