Remuneration to Management
In order to achieve solid, long-term growth in value for its shareholders, Investor strives to offer its employees a total remuneration package that is in line with the market and enables the recruitment and retention of the right employees.
To be able to decide what a market-level total remuneration involves and to evaluate prevailing rates, benchmarking studies are carried out every year in relevant sectors and markets.
The total remuneration for the president is determined by the board. Remuneration issues concerning other members of the Extended Management Group are decided by the Remuneration Committee, after which the Board is informed. Investor applies, throughout the organization, the principle that the immediate superior of every manager must always be informed of, and approve, the recruitment and remuneration of any replacement for an employee. The components of total remuneration may consist of:
- fixed cash salary,
- variable cash salary,
- long-term variable remuneration,
- non-monetary benefits and other remuneration.
Fixed cash salary, variable cash salary and long-term variable remuneration together represent the employee's total salary.
- Total remuneration should be competitive in order to attract the right person to the right place at the right time
- A substantial part of the total remuneration should be variable.
- The remuneration should be linked to long-term shareholder returns. We expect employees to invest their own personal funds in Investor
- The remuneration should be transparent.
- The remuneration should adhere to the “grandparent principle”, i.e. all changes in the employee’s remuneration are to be approved by the supervisor of the manager proposing the change.
The fixed cash salary component is reviewed annually and is the basis on which the variable cash salary is calculated.
The majority of employees also receive variable cash salary, in addition to their fixed cash salary. Variable cash salary is based on individual goals that are set each year. In this way, the annual variable cash salary is clearly connected to the work and performance of the individual. The goals are both qualitative and quantitative and are based on factors that support the company's long-term strategy.
As regard to the long-term variable remuneration program for employees within Investor, it is the Board's ambition to encourage employees to build up a shareholding in Investor. The program is structured to provide a balance between, on the one hand, the employees' assumption of risk through a requirement of personal investment in Investor shares and, on the other, the employees' possibility to receive performance-related allotments of shares in Investor. The own investment makes the employees committed to Investor.
In addition, a part of the remuneration to the employee is related to the long-term development of Investor and the Investor share and the employee is exposed to share price increases and decreases and the employee thereby has goals equivalent to those of Investor's shareholders. Long-term variable remuneration programs for employees within Investor consist of a Stock Matching Plan and a Performance-Based Share Program.
As concerns the long-term variable remuneration program for employees within Patricia Industries (PI), it is the Board’s ambition to encourage the employees to build up significant economic holdings in Investor shares as well as, either directly or indirectly, in existing and future investments made by PI. The program is structured to provide a balance between a) the employee’s own personal investment in Investor shares, and b) performance-related allotments of instruments tied to existing and future investments made by PI. The employees’ own holdings should enhance the employees’ commitment to PI and Investor.
In addition, since a substantial part of the participating employees’ overall remuneration is related to the long-term development of PI (including new investments made by PI), the employees will be exposed to value increases and value decreases and the employees will thereby have goals aligned with those of Investor’s shareholders. The program is built on the same structure as Investor’s long-term variable remuneration program.
See document "Guidelines for Remuneration and Long-term variable Remuneration" for a report on the programs for long-term variable remuneration and variable cash salary.
Investor's policy is for the Extended Management Group to own shares in Investor corresponding to a market value of at least one year's salary for the CEO and at least half of one year's salary for the other members of the Extended Management Group.
For monitoring and evaluation of remuneration according to the Swedish Code of Corporate Governance of on-going, and during the year completed, programs concerning variable salary and of the current remuneration structure and levels of remuneration, see document "Evaluation of Remuneration according to the Corporate Governance Code".
For description of Investor's system of variable remuneration to the Board of Directors and the Management Group, and of each outstanding share- and share-price-related incentive scheme in accordance to the Swedish Code of Corporate Governance, see document "Description variable remuneration and outstanding incentive scheme".