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 guidelines for compensation of senior executives are to be adopted at least every four years. The compensation guidelines that were adopted by the 2020 AGM were updated to meet the requirements of the EU Shareholder Rights Directive. Ahead of the 2021 and 2022 AGM, the Board did not find any reason to recommend changes to the guidelines that were adopted by the 2020 AGM, which therefore applied unchanged in 2021 and applies unchanged in 2022.
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 2021 can be found in the table below.
Evaluation of compensation 2021
According to the Swedish Code of Corporate Governance (the Code), 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.
In accordance with applicable rules, the Board of Directors has submitted to the Annual General Meeting 2022 a remuneration report that describes how Industrivärden's guidelines for remuneration of senior executives, which were adopted by the 2020 Annual General Meeting, were complied with during 2021. The remuneration report has been approved by the 2022 Annual General Meeting.
Guidelines for compensation 2022
The guidelines adopted by the Annual General 2020 for compensation pertain to Industrivärden's CEO and other members of the Executive Management. The guidelines are to be applied for compensation agreed upon, and changes made to already agreed upon compensation, after the guidelines have been adopted.
Compensation decided by the AGM is not covered by the guidelines.
The guidelines for compensation of senior executives are to be adopted at least every four years. The Board of Directors has not found any reason to recommend changes in the guidelines that were adopted by the 2020 AGM, which therefore continue to apply without change.
Long-term incentive programs
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 shares in the Company and thereby further emphasize long-term shareholder value. The incentive 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.
A description of outstanding incentive programs can be found in Note 7 in Industrivärden's Annual Report 2021.