Compensation

Successful and sustainable execution of the Company’s mission, objectives and strategy for capitalizing on the Company’s long-term interests requires that the Company can recruit and retain qualified employees. The guidelines contribute to this by ensuring that senior executives can be offered a going-rate, competitive total compensation package that is commensurate with their responsibilities and authority.

CEO and the Executive Management

The Board decides on the CEO’s total compensation. The CEO decides on compensation for other members of the Executive Management based on criteria drawn up by the CEO in consultation with the Compensation Committee. Compensation of members of the Executive Management is ultimately based on the guidelines for compensation of senior executives that are adopted by a general meeting of shareholders.

Compensation may consist of the following components:

Fixed cash salary
Short-term variable cash compensation
Long-term variable cash compensation (incentive programs)
Pension benefits and other benefits

CEO and the Executive Management’s compensation and pension costs for 2025 can be found in the table below.

CEO and the Executive Management’s compensation and pension costs for 2025 can be found in the table

Evaluation of compensation 2024

The Compensation Committee’s tasks include, among other things, monitoring and evaluating of (i) variable compensation to senior executives, (ii) the application of the guidelines for compensation to senior executives adopted by the AGM, and (iii) current compensation structures and compensation levels in the Company.

The Board of Director's remuneration report, that describes how Industrivärden's guidelines for remuneration of senior executives, were complied with during 2024, has been approved by the 2025 Annual General Meeting.

Long-term incentive programs

Since 2012, the AGMs have resolved on long-term share savings programs for the Company’s employees. The programs are part of a market-based total compensation package and aim to encourage Industrivärden’s employees to increase their ownership of shares in the Company and thereby further emphasize long-term shareholder value. Each program has a term of three years and requires the employee to invest a part of his or her yearly fixed base salary in Industrivärden Class C shares and retain the shares throughout the term of the program. The outcome is based on performance criteria that relate to the share price performance of Industrivärden Class C shares, and grants of shares are conditional upon continued employment. The share savings programs are intended to enhance Industrivärden’s capacity to recruit and retain qualified employees, as well as participants’ interest in and commitment to Industrivärden’s business and development.

The 2025 AGM resolved to offer a long-term incentive program for a maximum of 20 employees of AB Industrivärden.

A description of outstanding incentive programs can be found in Note 7 in Industrivärden's Annual Report 2025.