Any performance-related portion of salary should be linked to the earnings performance that person can influence. Remuneration to the CEO and other senior executives are resolved by the Board on the basis of a proposal from the Remuneration Committee.
| Remuneration and other benefits 2011 | ||||||
|---|---|---|---|---|---|---|
| Basic salary/ Director fees | Variable remuneration | Other benefits | Pension expenses | Other remuneration | Total | |
| KEUR | ||||||
| Chairman of the Board | 92 | - | - | - | - | 92 |
| Chief Executive Officer | 1,660 | 411 | - | 332 | - | 2,404 |
| Other senior executives (six people) | 3,174 | 912 | 55 | 239 | - | 4,379 |
| Total | 4,927 | 1,322 | 55 | 571 | - | 6,874 |
| Other benefits comprise company cars and benefits from free rent. | ||||||
Principles
The following principles for remuneration to senior executives in theGroup were adopted by the Annual General Meeting 2010. The guidelines for the remuneration of senior executives, essentially entail that such remuneration should comprise a basic salary, variable remuneration, other benefits and pension, and that all in all this remuneration shall be competitive and in accordance with market practice. The variable remuneration shall be maximised in relation to the basic salary, tied to such performance that the relevant individual may influence and based on the outcome in relation to individual targets.The Board shall annually consider whether a share or share price related incentive programme shall be proposed to the Annual General Meeting. The President and CEO must normally provide six months notice of termination of employment. If the company terminates the President and CEO’s employment, the period of notice and severance pay should not exceed a total of 24 months. Pension rights shall be either benefit or fee-based, or a combination of both, with an individual pension age, however, not lower than 60 years. The notice period shall normally be six months on the part of the employee. At notice of termination by the company, the notice period and the period during which severance payment is paid, all in all, shall not exceed 24 months.
Remuneration of Group Management
Remuneration of the President and CEO and other senior executives comprises basic salary, variable remuneration, other benefits and pension. In 2009 the President and CEO and the other senior executives declined salary increases as well as bonus payments with consideration to the fact that theGroup at the same time were carrying out a cost reduction programme.
Remuneration of Board of Directors
Remuneration to the Board of Directors is resolved by the Annual General Meeting on the proposal from the Nomination Committee. During 2011, the Chairman of the Board and other Board Members received remuneration totaling 367.6 KEUR.
Remuneration of External Auditors
Remuneration for services in addition to auditing services primarily refers to work related to acquisitions. Learn more.
Pension
Pension expense comprises defined-contribution pension schemes, and the expense affecting net earnings. The CEO’s pensionable age is 65. Pension premiums are payable at 15 per cent of pensionable salaries. Pensionable salary means basic salary. The pensionable age of other senior executives is 65. Pension premiums are 20-25 per cent of pensionable salary.
Severance Pay
Between the company and the CEO applies a mutual notice period of six months where ordinary salary will be paid. A termination initiated by the company, the CEO is entitled to additional severance pay corresponding to 12 months ordinary salary. Notice periods for other senior executives are 6 to 18 months. During the notice period, ordinary salary is payable, with the exception of one person, for whom additional severance pay corresponding to six months ordinary salary will be paid upon termination initiated by the company.
