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 management group are decided by the Remuneration Committee, with the board being informed of the decision afterwards. 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 are:
- fixed cash salary,
- variable cash salary,
- long-term share-based remuneration,
- other remuneration and benefits.
Fixed cash salary, variable cash salary and long-term share-based remuneration together represent the employee's total salary.
- Competitive total remuneration
- Significant portion should be variable salary
- Link to long-term value for Investor's shareholders through own investment and lock-in
- Transparency and simplicity
- "Grandfather principle"
Fixed cash salary
The fixed cash salary component is reviewed annually and is the basis on which the variable cash salary is calculated.
Variable cash salary
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. In Investor's trading function and investment organization (Core investments and Financial investments) there is a profit-sharing program.
Long-term share-based remuneration
As regard to the long-term variable remuneration program 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.
Investor's policy is for the Management Group to own shares in Investor corresponding to a market value of at least one year's salary for the President and at least half of one year's salary for the other members of the Management Group.
See document "Guidelines for Remuneration and Long-term variable Remuneration" for a report on the program for long-term variable remuneration and variable cash salary.
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 10.3, see the adjacent document "Description variable remuneration and outstanding incentive scheme".
Monitoring and evaluating
(Report according to the Swedish corporate Governance Code, 9.1 and 10.3)
For monitoring and evaluation 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 according to the Corporate Governance Code".
Remuneration to the Board
The Nomination Committee recommends the remuneration to the Board for the coming fiscal year and the AGM approves the remuneration. Remuneration is paid to Board members not employed by the company. For the remuneration to the Board, see document "Board Remuneration".
Members of the Board not employed by the company do not participate in Investor's share-based remuneration programs.