The board's proposed guidelines for compensation of senior executives
The Board of Directors proposes that the 2018 Annual General Meeting resolve in favor of the following guidelines: Compensation paid to the CEO and other members of the Executive Management shall consist of a base salary, a variable salary, other benefits and pension. The total compensation should be competitive and in line with the going rate in the market, and shall be commensurate with the executive’s responsibilities and authority. The variable salary portion consists of a short-term variable salary component (yearly) and a long-term variable salary component. The short-term variable salary component is based on individually defined targets, shall have a cap, and never exceed 50% of base salary. The long-term variable salary component is based on the long-term performance of the Company’s stock and shall have a cap. None of the variable components shall be pensionable. Upon termination of an executive’s employment contract by the Company, a maximum two-year notice period applies. No severance pay should be payable. Pension benefits shall be defined-contribution in all essential respects and give the members of the Executive Management the right to receive benefits from 60 or 65 years of age, depending on their position. The Board may depart from these guidelines if there are special reasons for doing so in individual cases. The proposal is largely consistent with the guidelines approved by the 2017 Annual General Meeting.
1) The Company’s cost amounts to SEK 6.8 M after deducting SEK 3.2 M for directors’ fees paid by the portfolio companies.
Employee ownership in Industrivärden
Industrivärden encourages its employees to make personal investments in Industrivärden shares, as this aligns the interests of the Company’s employees with other shareholders. The long-term incentive program that was adopted by the Annual General Meeting makes up part of the employees’ total compensation and also aims to increase employees’ ownership of stock in the Company.
The incentive programs are part of a competitive total compensation package in which the employee has the opportunity to receive matching shares and performance shares after three years, subject to investment of part of the employee’s base salary in Industrivärden shares. The program aims to encourage Industrivärden’s employees to increase their ownership of stock in the Company and thereby further emphasize long-term shareholder value. The Share Savings Program is expected to increase Industrivärden’s opportunities to recruit and retain competent employees as well as the participants’ interest in and commitment to Industrivärden’s business and development. Against this background, the program is judged to have a positive impact on Industrivärden’s continued development and thereby be beneficial for both the shareholders and Industrivärden’s employees. In the outstanding programs, a maximum of 46,976 matching shares and 41,810 performance shares may be granted. Grants of matching shares require continued employment at the time of the match. Grants of performance shares are conditional upon an average annual total return for Industrivärden’s Class C shares during the three-year lock-in period that is equal to or higher than the SIXRX index, and full grants of performance shares require an average annual total return for Industrivärden’s Class C shares during the three-year lock-in period that exceeds the SIXRX index by 2 percentage points per year. The cost of incentive programs was SEK 5.3 M (1.3) in 2017. The total liability for the programs is SEK 11.3 M (15.6).
Long-term incentive program 2017
The 2017 AGM resolved to offer a long-term share savings program to a maximum of 22 employees in the Industrivärden Group. During 2017, 13,469 shares were bought within the program, which can qualify for a maximum grant of 6,735 matching shares and 22,397 performance shares.
Board Fees can be found on page Attendance, Fees and Independence conditions.Click link to the right.