Remuneration

Remuneration of the board of directors and senior executives

Remuneration of the Board of Directors

Fees to the Chairman and other external Board members are paid in accordance with the resolution at the Annual General Meeting. No Board fees are paid to the President and the employee representatives.

In accordance with the resolution of the 2022 Annual General Meeting, the total fee to the external Board members elected at the Meeting amounts to in total SEK 3,230,000 on an annual basis.

2021/2022

SEK Board fee Audit Committee fee Remuneration Committee fee Total Board and Committee fee
Chariman of the Board (Andreas Nordbrandt) -628,757 -- -17,808 -646,565
Claes Boustedt -218,905 -29,589 -- -248,494
Kerstin Konradsson -117,905 -- -12,466 -130,371
Susanne Pahlén Åklundh -66,959 -- -- -66,959
Karl Åberg -218,904 -59,178 -- -278,082
Total -1,251,430 -88,767 -30,274 -1,370,471

2022/2023

SEK Board fee Audit Committee fee Remuneration Committee fee Total Board and Committee fee
Chariman of the Board (Andreas Nordbrandt) -1,350,000 -- -100,000 -1,450,000
Claes Boustedt -470,000 -100,000 -- -570,000
Kerstin Konradsson -470,000 -- -70,000 -540,000
Susanne Pahlén Åklundh -470,000 -100,000 -- -570,000
Karl Åberg -470,000 -200,000 -- -670,000
Total -3,230,000 -400,000 -170,000 -3,800,000

President and other senior executives

Guidelines for remuneration

For information on the current guidelines for remuneration of senior executives, adopted by an Extra General Meeting on 9 May 2022, please refer to the following documents

Alleima Guidelines for the remuneration of senior executives 2022  (PDF, 122 kB)
Protokoll fört vid extra bolagsstämma i Alleima Holding AB 9 maj 2022  (PDF, 121 kB)

President and CEO

The President and CEO of Alleima, Göran Björkman, will be paid an annual fixed salary of 6 200 040 SEK in the 2022 salary level. In addition, an annual variable cash based salary of maximum 70 percent of the fixed salary is payable. Göran Björkman is entitled to retire at age 65. A pension premium of maximum 37,5 percent of base salary is reserved annually.

In the event of termination of employment by the company, Göran Björkman has a notice period of 12 months and 12 months’ severance pay.

Other senior executives

Other members of the Group Executive Management are covered by a Swedish pension plan (ITP1 or ITP2). The retirement age is 65.

For members that are covered by the ITP plan 1 (defined contribution), a supplement is provided in the form of a disability pension insurance plan. The disability pension insurance applies a deferred period of 91 days and is payable with a sum of 32,5 per cent of the pensionable salary between 20 and 30 price base amounts and 50 per cent of the pensionable salary between 30 and 50 price base amounts.

For members that are covered by the ITP Plan 2 (defined benefit), a supplementary defined-contribution plan apply under which the company each year contributes 20–30 percent (depending on age) of fixed salary portions in excess of 20 price base amounts.

Severance pay is paid in the event that the company terminates employment. The severance pay equals 12 months’ fixed salary in addition to the notice period, which is six months. Any other income from employment may be deducted from the severance pay.

Long and short term incentives

Remuneration to the members of the Group Executive Management consists of fixed salary, variable remuneration, pension and other benefits. In 2022, the Group Executive management will be offered three types of variable remuneration.

First, the Group Executive Management's remuneration includes a short-term variable remuneration where the payment requires fulfillment of set financial targets regarding profitability, cash flow and growth, and is maximized to a highest possible proportion of the Group Executive Management member's fixed annual salary (40-70 percent). In 2022, no long-term share related or share price related incentive program can be implemented.

Second, the Company has adopted a long-term cash-based incentive program that runs during 2022 as no long-term share related or share price related incentive program can be implemented in 2022. Payment within the incentive program is conditional on continued employment in Alleima for a three-year period until the end of 2024. after which any payment is made. The payment is conditional on the Group achieving a defined profitability target in 2022 and is limited to a maximum of 75 percent of the fixed annual salary for the President and CEO and 60 percent of the fixed annual salary for other members of the Group Executive Management.

Third, the Company has decided to compensate the Group Executive Management and other program participants for loss of granted shares in Sandvik's long-term share-based incentive program for 2021. Sandvik's program is a three-year program where the program's outcome is determined after the end of the program's introductory year and where granted shares are awarded participants after the three-year period.

With the separation of Alleima from the Sandvik Group, a large number of the shares in the program will lapse for persons who are employed by Alleima. The Company has therefore decided to compensate the participants with a cash amount corresponding to the value of the shares lapsed. Payment of the amount will take place in 2024, when the Sandvik program would have ended, provided that the participants are still employed by Alleima.