Remuneration to senior executives
All senior executives in the management group are offered, under a main principle, a fixed annual salary supplemented by variable remuneration comprising a maximum of 30 per cent of fixed annual salary. The exception is the President whose variable salary portion may total a maximum of 50 per cent of fixed annual salary. Exceptions may also be made for senior executives following decisions by the Board.
The variable salary portion is normally divided between several targets: 1) The Group’s earnings; 2) Earnings in the business unit for which the manager is responsible; and 3) Individual/qualitative targets.
The variable salary portion is based on an earnings period of one year. The targets for the President are established by the Board. The targets for the other senior executives are established by the President following recommendations by the Board’s remuneration Committee.
In addition, approximately 100 senior managers have also been offered the opportunity to participate in a long-term employee share option scheme described in more detail in the “Financial Overview” of the Board of Directors’ Report. The remuneration and benefits of senior executives are described in the 2010 Annual Report in Note 4 on page 54.
Latest update: 1 April 2011