Annual Report 2010 - CDON Group

82 CDON Group AB
Annual report 2010
Note 23 Salaries, other remuneration, and social security contributions
Remuneration to senior executives
Guidelines for remuneration of senior executives, “Executives”, were established at the extra general meeting on 24 September 2010 as
follows:
Remuneration guidelines
The objective of the guidelines is to ensure that the CDON Group can attract, motivate, and retain senior executives within the context of
the CDON Group’s peer group, which consists of Nordic online and offline retailing companies. The remuneration shall be based on
conditions that are market competitive and at the same time aligned with shareholders’ interests. Remuneration to Executives shall
consist of a fixed and variable salary, as well as the possibility of participation in a long-term incentive programme and pension plans.
These components shall create a well balanced remuneration reflecting individual performance and responsibility, both short-term and
long-term, as well as CDON Group’s overall performance.
Fixed salary
The executives’ fixed salary shall be competitive and based on the individual executive’s responsibilities and performance.
Variable salary
The executives may receive variable remuneration in addition to fixed salaries. The contracted variable remuneration will generally not
exceed a maximum of 50 per cent of the fixed annual salary. The variable remuneration shall be based on the performance of executives in
relation to established goals and targets.
Other benefits
The CDON Group provides other benefits to executives in accordance with local practice. Other benefits can include, for example, a
company car and company health care. Occasionally, housing allowances may be granted for a limited period.
Pension
Executives are entitled to pension commitments based on those that are customary in the country in which they are employed. Pension
commitments will be secured through premiums paid to insurance companies.
Notice of termination and severance pay
The maximum notice period in any Executive’s contract is 12 months, during which time salary payment will continue. The Company does
not generally allow any additional contractual severance payments.
Deviations from the guidelines
In special circumstances, the Board may deviate from these guidelines, for example, additional variable remuneration for exceptional
performance. In such cases the Board of Directors is obliged to explain the reason for the deviation at the following Annual General
Meeting.
Group
2010 2009
Personnel expenses
Salaries 94,799 66,453
Social security contributions 39,842 17,210
Pension expenses – defined contribution plans 5,020 4,118
Expenses for share-based payments - 509
Social security contributions on share-based payments - 197
Total 139,661 88,487
2010 2009
Senior executives 7,639 4,586
of which, variable salary 1,845 563
Remuneration and other benefits 2010
(SEK thousands) Base salary
Variable
salary
Other
benefits
Pension
expenses
Option
expenses Total
Mikael Olander, Chief Executive Officer 2,166 1,050 282 3,498
Senior executives (6 persons) 3,628 795 499 4,922
Total 5,794 1,845 - 781 - 8,420
The figures reported for 2010 relate to the full year. Accrued variable salary to be paid after year end to the CEO of SEK 262 thousand
(225).