Remuneration, Executive Management Team and Board of Directors

Guidelines

The 2016 Annual General Meeting adopted guidelines for remuneration of senior executives that are based on a total remuneration package comprising a fixed salary, variable salary and other benefits, and a pension; see Note C3. It has been proposed to the 2017 AGM that these guidelines be simplified and changed, see chapter Information to shareholders.

Remuneration of the President and other senior executives

Remuneration of the President and other senior executives is presented in Note C3. Variable remuneration for the CEO, CFO and Business Unit Presidents was maximized to a total of 100% of the fixed salary for 2016. For two Business Unit Presidents, stationed in the Americas, the maximum outcome is 110–130%, while the corresponding limit for other senior executives is 90%.

Variable remuneration and strategic targets

Programs for variable remuneration are formulated to support the Group’s strategic targets. The short-term program is individually adapted and based mainly on cash flow, operating profit and growth. The long-term program is based on the SCA share’s long-term total shareholder return.

Remuneration of the Board

The total remuneration of the AGM-elected Board members amounts to SEK 7,995,000 in accordance with the AGM’s resolution. See Note C3 for further information.