The Remuneration Committee’s main responsibility is to advise the Board of Directors regarding salary and other remuneration, including retirement compensation of the President and CEO, Executive Vice Presidents and other officers reporting directly to the President and CEO. Other responsibilities include:
developing and monitoring strategies and general guidelines for employee compensation, including variable plans and retirement compensation;
approving variable pay under the previous year’s plan (beginning of each year);
preparation of the long-term variable plan for referral to the Board and subsequent resolution by the General Meeting of Shareholders, and
preparation of the targets for variable pay for the following year for resolution by the Board.
To achieve this, the Committee holds annual strategic compensation reviews with representatives of the Company to determine the direction to follow, allowing program designs and pay policies to be aligned with the business situation. Consideration is given to trends in compensation, legislative changes, disclosure rules and the general global environment surrounding executive pay. The Committee reviews salary survey data to approve any base pay increase for executives, effective from the following January.
Members
The Remuneration Committee consists of four members appointed by the Board from among its members.
Current members
Current members are: Michael Treschow, Chairman of the Committee, Nancy McKinstry, Börje Ekholm and Karin Åberg.
The Remuneration Committee has appointed an independent expert advisor, Mr. Gerrit Aronson, to assist and advise the Committee.
Work of the Remuneration Committee 2008
The Remuneration Committee held seven meetings in 2008 – attendance is reflected in the table “Directors’ Attendance 2008”. The Committee reviewed and prepared for the Board a proposal for a Long-term Variable Compensation Program 2008, which was approved by the Annual General Meeting of Shareholders in April. The Committee also prepared proposals for salaries and variable pay for 2008, including remuneration of the President and CEO. Towards the end of the year, the Committee concluded its analysis of the current Long-Term Variable Remuneration structure and remuneration policy to be referred to the Annual General Meeting of Shareholders 2009 for resolution. For further information on remuneration, fixed and variable pay, please see “Remuneration” in the Annual Report.
