BOARD OF DIRECTORS

Remuneration to the Board of Directors is determined by decision of the Annual General Meeting. The 2007 AGM resolved that fees of SEK 350,000 would be paid the Board Chairman, SEK 260,000 to the Deputy Chairman and SEK 175,000 to each of the other Board members. In addition, fees for work in the audit and remuneration committees would be paid in an amount of SEK 40,000 to each of the committee members. Aside from board fees, the Board is not entitled to any remuneration other than compensation for travel and accommodation.

 

group management team

Remuneration to the Managing Director, Deputy Managing Director and other senior executives consists of
basic salary, variable remuneration, other benefits and pension benefits. The distribution between basic salary
and variable remuneration should be proportionate to the individual’s responsibilities and powers.

  

MANAGING DIRECTOR AND CEO

During the year, the Managing Director and CEO Jesper Åberg, who took up duties on 1 January 2007, received salary of SEK 2,900,000. Added to this is a bonus amounting to a maximum 40 per cent of basic salary.Bonuses are payable when the Group has met its targets for operating profit and net sales.

The retirement age for the Managing Director is 60 years. Pension benefits consist of a defined contribution plan for which annual premiums up to the age of retirement are paid in an amount equivalent to 30 per cent of pensionable salary, comprising fixed monthly salary. Bonuses, benefits and termination benefits are not pensionable. From the age of 65 years and onwards, pension is paid according to a defined contribution national pension plan. All pension benefits are vested, i.e. they are unconditional on future employment.

The mutual term of notice between the company and the Managing Director is twelve months. In the event of dismissal by the company, the Managing Director is entitled to termination benefits corresponding to one year’s salary.

 

OTHER SENIOR EXECUTIVES

The other members of the Group Management Team include the CFO and Deputy Managing Director, the managing directors of the Swedish and Finnish sales companies and individuals with responsibility for human resources, corporate communications, marketing and production at the Group level. For the financial year 2007 these individuals received total salaries of SEK 10,171,000 and other benefits of SEK 531,000, in addition to bonuses of SEK 1,182,000.

Bonus to the Deputy Managing Director is payable on the same conditions as that for the Managing Director and CEO. For other senior executives, bonuses may amount to a maximum 30 per cent of basic salary and are based on the above-mentioned Group targets and individual targets.

The retirement age for the Deputy Managing Director is 60 years, where pension benefits between the ages of 60 and 65 years are payable under a defined contribution plan in an amount equal to 60 per cent of final salary. From the age of 65 years and onwards, pension is paid according to a defined contribution national pension plan. All pension benefits are vested, i.e. they are unconditional on future employment. The retirement age for other senior executives is 65 years, in accordance with the national pension plans. All defined contribution pension benefits are vested, i.e. they are unconditional on future employment.

The mutual term of notice between the company and the Managing Director is twelve months. In the event of dismissal by the company, the Managing Director is entitled to termination benefits corresponding to one year’s salary. For other senior executives, the terms of notice vary between six to twelve months on the part of both the employee and the company. In the event of dismissal by the company, these individuals are not entitled to any termination benefits other than salary during the term of notice.

PREPARATORY AND DECISION-MAKING PROCESS

During the year, the remuneration committee has issued recommendations to the Board of Directors regarding principles for remuneration to senior executives. These recommendations have included the distribution between fixed and variable remuneration and the amount of any salary increases. In addition, the remuneration committee has proposed criteria for determining bonus attainment, as well as pension terms and termination benefits. The Board has discussed the committee’s recommendations and has used these as a basis for decision. Remuneration to the Managing Director and Deputy Managing Director for the 2007 financial year has been determined by the Board on the basis of the remuneration committee’s recommendations. Remuneration to other senior executives has been decided by the Managing Director after consultation with the Chairman of the Board. In 2007 the remuneration committee met on three occasions. When required, the committee’s work has been carried out with the assistance of outside expertise. The principles for remuneration to senior executives were presented to the 2007 AGM for approval.