Södra annual report 2012

Note 6
Salaries and benefits
Employee expenses
Board and
President
2012 2011
Other
employees
Board and
President
Other
employees
Parant Company 27* 325 12 304
Subsidiaries 28 1,350 26 1,313
Total 55 1,675 38 1,617
* The greater part of the year includes double president salaries and redundancy payments.
Salaries, benefits and social
security costs
Salaries and
benefits
2012 2011
Social
security costs
Salaries Social
and benefits security costs
Parent Company 349 151 316 193
(of which pension costs) 1) (42) (94)
Subsidiaries 1,381 564 1,339 551
(of which pension costs) (146) (187)
Total 1,730 715 1,655 744
(of which pension costs) 2) (188) (281)
1) Of the Parent Company’s pension expenses, SEK 13 million (5) pertains to current and previous Board
members and Presidents. Outstanding pension obligations to these individuals amount to SEK 39 million (29).
2) Of the Group’s pension expenses under the Swedish Annual Accounts Act, SEK 17 million (9) pertains
to current and previous Board members and Presidents. Outstanding pension obligations to them amount
to SEK 56 million (48).
Benefits to senior management
Senior management
Senior management refers to top-level management and other senior management.
Södra’s top-level management includes the Chairman, Vice Chairman
and the President and CEO. At year-end, other senior management
included seven salaried employees (12) who, with the CEO, made up Group
Senior Management. In addition, two positions are currently vacant.
Preparation and decision process for setting benefits for senior
management
The Fees and Benefits Committee, appointed by the Board, includes at least
three Board members, but not the CEO. In addition to preparing matters
such as policies for benefits and other employment terms for Group management,
the Committee should regularly approve expense summaries for the
Board, the Chairman and Vice Chairman, and the CEO’s personally related
expenses.
Remuneration and benefits to the Board and senior management
As resolved at the AGM, Board members received remuneration and benefits
in 2012 in an amount of SEK 4,767 thousand (4,046). This consists of SEK 2,527
thousand (2,112) in fixed Board remuneration, SEK 1,821 thousand (1,677) in
daily remuneration, and SEK 419 thousand (257) in other remuneration and
benefits.
Additional fees of SEK 813 thousand (661) were paid to Board members who
also sit on the Boards of Södra subsidiaries.
To Chairman Christer Segerstéen, a total of SEK 1,441 thousand (1,300)
was paid in remuneration and benefits. To Vice Chairman Anders Grennborg,
a total of SEK 827 thousand (718) was paid in remuneration and benefits.
The remuneration from the Parent Company in 2012 constitutes grounds for
pension under one of the ITP plans (ITP1 and ITP2).
To former President Leif Brodén, SEK 16,181 thousand (7,062) was paid in
remuneration and benefits in 2012 (1 January – 8 May) and he also received
SEK 7,220 thousand in pension insurance. In addition, SEK 182 thousand (152)
was paid in bonus. Pension was paid under the ITP plan (ITP1).
To Acting President Gunilla Saltin, a total of SEK 3,038 was paid in remuneration
and benefits in 2012 (9 May – 31 December). Pensions were paid under
the ITP plan (ITP1). In addition to the premium under the ITP plan, the company
paid endowment insurance to Saltin in an amount of SEK 415 thousand.
Yield on the endowment insurance, both positive and negative, accrues to
Saltin as additional pension. During the period Saltin was Acting President,
she also retained her assignment as the President of Södra Cell AB.
The group of other senior management was paid remuneration and benefits
totalling SEK 24 million (22) of which SEK 0.6 million (1) in productivity bonus
with a maximum of one month’s salary on the same terms as other employees.
Pension is paid out under one of the ITP plans. This group has individual
employment contracts with termination periods of three to six months, and a
redundancy payment of up to 18 months. For some senior management, the
company also paid premiums for endowment insurance totalling SEK 2 million
(2) in accordance with individual contracts.
Number of employees
2012 2011
Number
of which
men, % Number
of which
men, %
Parent Company
Sweden 745 74 714 75
Subsidiaries
Sweden 2,667 83 2,609 84
Norway 427 86 432 85
Lithuania 105 32 — —
Denmark 77 88 83 89
Estonia 15 67 16 65
Latvia 8 63 8 63
Germany 5 40 5 20
France 4 25 4 25
United Kingdom 2 50 2 50
Italy 3 33 3 33
Switzerland 3 33 3 33
Total 4,061 80 3,879 82
Men/women
management, %
2012 2011
Men Women Men Women
Group
Boards 76 24 73 27
Management groups 79 21 69 31
Parent Company
Board 80 20 77 23
Management group 62 38 62 38
24
Södra 2012