PC2. Personnel and board costs

Salaries and remuneration

SEKm

2016

2015

1)

Board fees decided by the Annual General Meeting amounted to SEK –8.0m (–6.4). For further information, see Notes C1, C2, C3 and C4.

Board of Directors 1), President, Executive Vice Presidents and senior executives (6 (5))

–73

–85

of which variable remuneration

–31

–25

Other employees

–129

–149

Total

–202

–234

Social security costs

SEKm

2016

2015

1)

Of the Parent Company’s pension costs, SEK –101m (–100) pertain to the Board, President, Executive Vice President and senior executives. Former Presidents and Executive Vice Presidents and their survivors are also included. The company’s outstanding pension obligations to these individuals amounted to SEK 497m (409) prior to the agreement on the transfer of assets and liabilities between the company and SCA Hygiene AB. The company’s outstanding pension obligations as per the balance sheet on December 31, 2016 relates to the pension obligation to the Executive Vice President.

Total social security costs

–299

–272

of which pension costs 1)

–235

–198

Pension costs

SEKm

2016

2015

 

 

 

Self-administered pension plans

 

 

Costs excluding interest expense

–152

–127

Interest expense (recognized in personnel costs)

–6

–12

 

–158

–139

Retirement through insurance

 

 

Insurance premiums

–24

–27

Other

–3

5

 

–185

–161

Policyholder tax

0

0

Special payroll tax on pension costs

–47

–36

Cost of credit insurance, etc.

–3

–1

Pension costs for the period

–235

–198

Premiums during the year for disability and family pension insurance with Alecta amounted to SEK –3m (–2). Premiums for 2017 is expected to be SEK 3m, see also Pension provisions in this note. Personnel costs also include other personnel costs in the amount of SEK –13m (–11).

Average number of employees

 

2016

2015

Sweden

120

118

of whom women, %

50

53

Breakdown of employees by age groups, %

2016

21–30 yrs

31–40 yrs

41–50 yrs

51–60 yrs

61– yrs

 

5

23

36

29

7

Women comprised 42% (30) of Board members and 33% (35) of senior executives.

Provisions for pensions

AP ACCOUNTING PRINCIPLES

The Parent Company applies the regulations in the Pension Obligations Vesting Act (Tryggandelagen). The main difference compared with IAS 19 is that Swedish GAAP disregards future increases in salaries and pensions when calculating the present value of the pension obligation. This present value includes, however, a special reserve for future payments of pension supplements indexed for inflation. Both defined contribution and defined benefit plans exist in the Parent Company.

PRI pensions

Pension liabilities pertaining to PRI pensions have been secured through a common Swedish SCA pension fund. The market value of the Parent Company’s portion of the foundation’s assets at December 31, 2016 amounted to SEK 127m (111). In the past two years, no compensation has been received. The capital value of the pension obligations at December 31, 2016 amounted to SEK 125m (119). Pension payments of SEK –7m (–7) were made in 2016. The assets exceeded pension obligations during 2016, which is why provisions in the balance sheet of SEK 8m made in previous years could be dissolved.

Other pension obligations

The Group’s Note C3 Remuneration of senior executives describes the other defined benefit pension plans of the Parent Company. The table below shows the change between the years.

Capital value of pension obligations relating to self-administered pension plans

SEKm

2016

2015

 

 

 

Value, January 1

713

619

Compensation received for assumed pension obligations

24

Compensation paid for transferred pension obligations

–839

Costs excluding interest expense

152

127

Interest expense (recognized in personnel costs)

6

12

Payment of pensions

–32

–45

BS Value, December 31

24

713

External actuaries have carried out capital value calculations pursuant to the provisions of the Swedish Act on Safeguarding of Pension Obligations. The discount rate is 0.8% (1.9). The defined benefit obligations are calculated based on salary levels valid on the respective balance sheet dates. The majority of pension obligations were transferred to the subsidiary SCA Hygiene AB on December 30, 2016. The pension obligations will be formally transferred when the County Administrative Board grants its approval, which is expected to occur in 2017. Next year’s expected payments for the above defined benefit pension plans amount to SEK 30m, which will be charged to the subsidiary SCA Hygiene AB. Part of the pension obligations are covered by capital redemption policies. The capital redemption policies are reported as other long-term receivables in the balance sheet.