Remuneration, Executive Management Team and Board of Directors

Guidelines

The 2015 Annual General Meeting adopted guidelines for remuneration of senior executives that are based on a total remuneration package comprising a fixed salary, variable salary and other benefits, and a pension; see Note C3. These guidelines are proposed to remain unchanged until the 2016 AGM with the addition that pension benefits in new employment contracts should, wherever possible, only include defined premium pension benefits and entitle the executive to receive a pension from the age of 65; see chapter Other Group information.

Remuneration of the President and other senior executives

Remuneration of the President and other senior executives is presented in Note C3. Variable remuneration for the CEO, CFO and Business Unit Presidents was maximized to a total of 100% of the fixed salary for 2015. For one Business Unit President, stationed in the US, the maximum outcome is 130%, while the corresponding limit for other senior executives is 90%.

Variable remuneration and strategic targets

Programs for variable remuneration are formulated to support the Group’s strategic targets. The short-term program is individually adapted and based mainly on cash flow, operating profit and growth. The long-term program is based on the SCA share’s long-term total shareholder return.

Remuneration of the Board

The total remuneration of the AGM-elected Board members amounts to SEK 7,780,000 in accordance with the AGM’s resolution, although the actual compensation was lower due to two members resigning from the Board in advance. See Note C3 for further information.