Note 17 – Remuneration of Board members, CEO and other senior executives

Principles for remuneration

The Chairman of the Board and one other Board member are entitled to remuneration in their acting role as external Board members , who receives 220 TSEK and 110 TSEK per year as board fee respectively.

Remuneration of the CEO and other members of management are paid in accordance with guidelines for remuneration to senior executives produced by the Board. Remuneration should reflect market norms and consist of fixed and variable remuneration, other benefits and pension. The variable remuneration shall not exceed the basic salary. The CEO receives an annual gross salary of 400 TEUR and has the opportunity to achieve an annual bonus equivalent upto 100% of his annual basic salary based on predetermined targets. In 2015 an extraordinary bonus was paid related to fulfilment of some special projects defined by the owners. The CEO shall also be entitled to certain other benefits such as company car.

Remuneration to other senior excecutives is decided by the CEO after previous consultation with the Board. Remuneration is paid as monthly basic salary, variable remuneration and other benefits. Variable remuneration is based on predetermined targets.

Pension costs

The pension costs related to the CEO are consisting of defined contribution payments amounting to 60 TEUR (45 TEUR) and includes except from the normal statutory pension cost an additional pension agreement corresponding to 15% (15%) of the fixed annual salary.

The pension costs to other senior excecutives are consisting of defined contribution payments corresponding to the standard rules in respective country/company.

Employment termination and severance payments

The CEO has 12 months of notice period upon termination of the employment from the Company and 12 months when self terminating the employment. During the notice period, the CEO has right to full payment of the base salary and other benefits, regardless if there is obligation to work or not for the CEO. Severance payment is maximized to 12 months salary in case of termination of the employment from the Company’s side.

Other senior executives have in general 12 months of notice period upon termination of the employment from the Company and 6 months when self-terminating the employment. During the notice period, there is entitlement of full payment of the base salary and other benefits, regardless if there is obligation to work or not. Entitlement to severance payments does not exist for other senior excecutives.

The tables below are specifying remuneration to Board members, CEO and other senior executives:

2015 Salaries/ board fee Bonuses Other benefits Pension costs Total
Board members:
Hans Petersson 35 0 0 0 35
Sebastian Burmeister 0 0 0 0 0
Jan Ohlsson 0 0 0 0 0
Panu Routila (resigned October 1st 2015) 0 0 0 0 0
Tero Telaranta (from October 1st 2015) 0 0 0 0 0
Marcus Jennekvist 0 0 0 0 0
Walter Ahlström 12 0 0 0 12
Harald Schulz 0 0 0 0 0
CEO:
Harald Schulz 400 454 8 60 922
Other senior excecutives:
(8 persons) 1 119 546 28 228 1 921
Total 1 566 1 000 36 288 2 890

The tables below are specifying remuneration to Board members, CEO and other senior executives:

2014 Salaries/ board fee Bonuses Other benefits Pension costs Total
Board members:
Hans Petersson 12 0 0 0 12
Panu Routila 0 0 0 0 0
Jan Ohlsson 0 0 0 0 0
Marcus Jennekvist 0 0 0 0 0
Harald Schulz 0 0 0 0 0
Sebastian Burmeister 0 0 0 0 0
CEO:
Harald Schulz 300 235 7 45 587
Other senior excecutives:
(8 persons) 1 077 270 36 162 1 545
Total 1 389 505 43 207 2 144