Annual Report 2009 - Husqvarna Group

Report by the Board of Directors Husqvarna Annual Report 2009 39
STI shall be dependent on the position and may amount to
a maximum of 50% of the salary on attainment of the “target”
level and a maximum of 100% of the salary on attainment of
the “stretch” level, which also is the maximum STI.
In the US, the STI component is normally higher and may
amount to a maximum of 100% on attainment of the “target”
level and a maximum of 150% of the salary on attainment of
the “stretch” level.
The Board of Directors shall decide if the full 50/100/150%
shall apply, or if a lower percentage is appropriate.
Long-term incentives
The Board of Directors shall evaluate on a yearly basis whether a
long-term incentive program (e.g. share or share-price based)
shall be proposed to the Annual General Meeting.
Pensions and insurance
Pension and disability benefits shall be designed to reflect regulations
and practice in the country of employment, and the value
of the benefits shall match normally accepted levels within the
country. If possible, pension plans shall be defined contribution
plans in accordance with the Group’s pension policy.
Other benefits
Other benefits can be provided in accordance with normal
practice in the country where the member of Group Management
is employed. However, these benefits shall not constitute
a significant part of total remuneration.
The Nomination Committee’s proposal
The Nomination Committee’s proposal to the Annual General
Meeting includes:
• Unchanged number of Board members to be elected by the
AGM (9).
• Re-election of Lars Westerberg, Peggy Bruzelius, Börje
Ekholm, Tom Johnstone, Ulf Lundahl, Anders Moberg,
Robert F. Connolly and Magnus Yngen. Election of Ulla
Litzén as new member. Gun Nilsson has declined re-election.
• Re-election of PricewaterhouseCoopers for the period until
the end of Annual General Meeting 2014.
• Re-election of Lars Westerberg as Chairman of the Board,
and proposed Chairman of the AGM.
• Unchanged Board fees totaling SEK 5,345,000, of which
SEK 1,600,000 for the Chairman and SEK 460,000 for other
members not employed by Husqvarna.
• Portion of fees to be paid in synthetic shares.
• Unchanged Committee fees, with SEK 100,000 to the
Chairman in the Remuneration Committee and SEK 50,000
to each of the other members. SEK 175,000 to the Chairman
in the Audit Committee and SEK 75,000 each to the other
members.
• Unchanged principles for appointment of Nomination
Committee for AGM 2011.
The full proposal will be included in the notice of the AGM,
and published on Husqvarna’s web site, www.husqvarna.com.
Notice of termination and severance pay
Members of Group Management shall be offered periods of
notice and levels of severance pay which are in line with
accepted practice in the country where the member is
employed. Members of Group Management shall be obliged
not to compete with the company during the notice period.
Based on the circumstances in each case, a non-compete obligation
may with continued payment also apply after the end of
the notice period. Such non-compete obligations shall not
apply for more than 24 months from the end of the notice
period.
Previously determined remuneration which
has not become payable
The principal conditions for remuneration to the Group
Management in current contracts of employment are given in
Note 24, with references.
Authority for the Board to deviate from the guidelines
If special circumstances exist, the Board of Directors may deviate
from these guidelines. In the event of such a deviation, the
next Annual General Meeting shall be informed of the reasons.