Annual Report 2009 - Husqvarna Group

86 Husqvarna Annual Report 2009 Notes
Amounts in SEKm unless otherwise stated.
Cont. Note 24
Terms of employment for other members
of Group Management
As with the President, other members of Group Management
receive a remuneration package comprised of fixed salary,
variable salary based on annual targets, long-term incentive
programs and pension benefits. Remuneration is revised
annually per 1 January.
The variable salary is based on value creation for the Group
and/or for the appropriate business unit. The variable salary is
40–50% of the fixed salary at target level and is capped at
80–100% at stretch level. For 2009 the members of Group
Management are also covered by a variable salary based on
cash flow targets and which is 12% of the fixed salary at target
level and is capped at 24% at stretch level. This variable salary
has been introduced to put focus on improved cash flow but
also to compensate for that the long term incentive program
for 2009 (LTI 2009) was reduced compared to former long
term incentive programs. The additional variable salary does
only apply for those participating in the LTI 2009.
Members of Group Management participate in the Group’s
long-term incentive programs which consist of the programs
for 2007, 2008 and 2009 (LTI 2007, LTI 2008 and LTI 2009).
For information on these programs, see Note 19.
The notice period for termination is 12 months on behalf of
the Company and 6 months on the part of the employee. The
members of Group Management, employed in Sweden, are
entitled to severance pay, corresponding to 12 monthly salaries
with deduction for any other income, in the event of
notice of termination from the employer.
Pension terms for other members of Group
Management
The members of Group Management employed in Sweden
(six out of eight) are covered by the collectively agreed ITP
plan. One member of Group Management is covered by the
principal rule of the ITP plan and the alternative rule of the
plan is applied to the other members of Group management.
These individuals are also covered by the Husqvarna Executive
Pension Plan, which is a defined contribution plan. The
employer contribution to the plan is equivalent to 35% of the
pensionable salary which also includes contributions for the
ITP plan, alternative ITP and any supplementary disability and
sur vivor’s pension. The pensionable salary is calculated on
the basis of current fixed salary plus last year’s variable salary.
The retirement age is 62 for those members of Group Management
who are employed in Sweden. In addition to the
pension terms described above, there is a commitment to pay
a single premium, at retirement age for pension benefits, corresponding
to 22.68 monthly salaries in the event that the
member of Group Management remains in service until the
retirement age. The members of Group Management that are
not employed in Sweden are covered by the Group’s company
pension plans in the respective country of employment
(Germany and the US). Retirement age is 63 or 65.
Terms of employment for the former President
The former President and CEO, Bengt Andersson, retired
1 October 2008, but his employment remained until 30 June
2009 when he attained the regular retirement age 65. The
cost for the former President’s remuneration during 2009
was taken in 2008.
Remuneration to Group Management 2009
SEKt
Fixed salary
Variable
salary
Pensioncost
Long-term
incentive
Total
President 5,750 1,380 3,453 347 10,930
Other members of Group Management 1 28,461 3,748 11,381 2,392 45,982
Total 34,211 5,128 14,834 2,739 56,912
1) Other members of Group Management comprise eight individuals per 31 December. One individual has been added and two have left Group
Management during 2009. The remuneration shown above refers to the part of the year during which the individual in question was part of
Group Management.