Remuneration for senior executives
The principles for the remuneration of senior managers (Group management) at AAK, in both the Parent company and the Group,are designed to ensure that AAK can offer internationally competitive remuneration that can attract and retain qualified managers.
Consideration and determination
Compensation of the Chief Executive Officer and other senior managers is considered by the Remuneration Committee of the Board of Directors and all decisions are made by the Board as a whole.
Components of remuneration
Total remuneration includes salary, annual variable remuneration, pension, car allowance, and termination benefit. Senior managers have had the opportunity of investing in stock options at market price.
Fixed salary, individually determined and differentiated according to responsibility and performance, is determined on competitiveprinciples and reviewed annually. The applicable date for the annual performance review is January 1.
Annual variable remuneration is based on meeting set targets determined on an annual basis. These targets are related to theperformance of the Company. Senior management are entitled to up to 110 percent of their annual fixed salary in variable remuneration.
Pensions for senior management are in line with the Swedish KTP plan (corresponding to ITP).
The Company has separate agreements with the Chief Executive Officer and senior managers for termination compensation of one year’s salary (fixed cash amount per month x 12 months) on termination by the Company. Neither the Chief Executive Officernor any senior manager can independently assert the right to termination compensation.The period of notice of termination by the Chief Executive Officer and senior managers is agreed as 6 months.Termination notice by the Company is agreed as 12 months.