PDF Document 2.46 MB - Geveko

Financial Reports / NotesNote 34 Transactions with related parties, cont’dInformation on compensation, etc of senior management personnelPursuant to the AGM’s decision, a fee is paid to the Chairman and members of the Board, in addition to which compensation is paid forcommittee activities. No fee is paid to a Board member who is employed within the Geveko group.Salary/ Variable salary Committee Other Other PensionBoard fee component fees remuneration benefits costs TotalChairmanO Mattsson 400,000 3,000 403,000MembersD Bergendahl 150,000 43,000 193,000K Dunberger 150,000 3,000 153,000T Landeström 150,000 3,000 153,000H Levander 150,000 20,333 170,333S Sjölander 150,000 49,000 199,000Å Söderström Jerring 150,000 150,000Deputy memberL Lewerth 1) - - -Total Board fee 1,300,000 - 121,333 - - - 1,421,333Managing director H Ljungkvist 2,110,062 - - - 90,967 1,123,623 3,324,652Total Board and MD 3,410,062 - 121,333 - 90,967 1,123,623 4,745,985NB. Contractual pension premiums and cost of temporary pension.1) The Board secretary is paid on the basis of approved invoices. In 2007 remuneration consisted of fees for legal counselling of SKr 745,000.Guidelines for benefits of board and managementRemuneration Committee – planning and decision-making processDuring the year, the Remuneration Committee submitted proposals to the Board on conditions for the variable remuneration (bonuses) ofthe managing director and other senior management personnel. The managing director’s remuneration for the 2007 financial year – fixedsalary and conditions for variable salary component – are decided by the AGM on the basis of proposals submitted by the RemunerationCommittee. The Committee met once in 2007. Reports on its meetings are submitted regularly to the next Board meeting.The Board will recommend to the AGM on 24 April 2008 that it adopt the following guidelines for the benefits of the managing directorand other senior management personnel. The company shall aim to provide a competitive benefits package, the criteria for this being basedon the importance of the duties, competence requirements, experience and performance; the benefits shall consist of: fixed basic salary,variable component (bonus), pension benefits, other benefits and severance conditions.Managing director and CEOA bonus of up to 40% of the fixed salary may be payable depending on the result achieved. No specific Board fee is paid. Pension is payablefrom a retirement age of 65. In addition, a temporary pension of 50% of the final salary may be payable between the age of 60 on the initiativeof the employer, and between the age of 62 on the initiative of the employee, and the normal retirement age. Notice of termination ofemployment by the company is 12 months, in addition to which severance pay of 12 months’ salary is payable, from which may be deductedcompensation for gainful employment paid by another employer. There are no options or equity-related incentive programmes. The managingdirector’s holding of call options was not issued by Geveko.Other senior management personnelBasic pension benefits in Sweden consist of the ITP plan. Complementary to this is a defined premium pension. In all, the total cost shall notexceed 36% of the annual salary. The retirement age is 65. In foreign companies, a pension is paid in accordance with generally acceptedpractice in each country.The variable component shall not exceed 40% of the fixed annual salary and is based on the result in relation to agreed and individualperformance targets. There are no options or share-based incentive schemes.Salary during notice and severance pay for a senior management employee shall not exceed 24 monthly salaries in total.74