The CEO is responsible for running operations. The CEO reports to the board and ensures that the board receives all necessary information for making well-informed decisions. The CEO is not a board member but attends all board meetings except where the board deliberates internally, without the presence of any company management.
The CEO has appointed an Executive management team with ongoing responsibility for various parts of the business. The Executive management team meets regularly to manage and monitor the business and deal with organizational issues.
Remuneration to the CEO and other senior executives
Guidelines for remuneration to senior executives are established by the AGM. The proposal for guidelines is prepared by the board's Remuneration Committee. Subsequently, the board makes decisions on the proposed guidelines and presents it to the AGM. The 2018 AGM established the following guidelines for remuneration and other terms of employment for senior executives.
Senior management position holders
Senior management position holders are the CEO and other members of the Group management team. The Group management team comprises nine persons, including the CEO, of which four are women.
Guidelines for remuneration
The guiding principle is that Mycronic shall offer competitive remuneration and conditions of employment which enable the company to hire and retain position holders. When preparing remuneration issues, external advisors are utilized when needed. This is done continuously, in order to collect and evaluate information about current market conditions. Remuneration is based on factors such as position, competence, experience and performance.
The total remuneration consists of the following parts:
- Fixed salary
- Short-term incentive program (STI) (variable compensation)
- Long-term incentive program (LTI)
- Other benefits
- Any severance pay
Remuneration of senior management position holders 2017, kSEK
|Lena Olving, CEO and President
|Other senior management position holders
The fixed salary for the CEO in 2017 was SEK 349,250 per month.
Short-term incentive program (STI)
The STI is paid according to the fulfillment of Group targets with a maximum of 80 percent of an annual basic salary. For 2017, STI aounted to amounted to SEK 2,072 thousand for the CEO and SEK 2,758 thousand for other senior executives. The outcome of STI for 2017 reached 62 percent of the maximum amount.
Long-term incentive program (LTI)
LTI shall encourage the acquisition of shares in Mycronic. If a senior executive buys shares in Mycronic, the company matches the amount by cash payment of the same amount. The matching amount shall be used to acquire shares in the company. The shares must be kept for four years. LTI is maximized to SEK 100 thousand after tax for the CEO and SEK 50 after tax for each of the other senior executives. If certain requirements after three years are met, the company shall make an additional payment corresponding up to 150 percent of the matching amount. The criteria mean that the employee still must be employed and have retained their acquired shares. In addition, the Board's established goals for the company's earnings per share must be met. Also this matching amont shall be used to acquire shares in the company, which must be kept for at least one year.
Other benefits consist of a company car and health insurance. Additionally, the CEO is entitled to accommodation and an SJ annual pass.
Pension and sick benefits are premium-based. For the CEO, the pension premium is 35 percent of the basic salary. For other senior management position holders, the pension premiums are capped at 30 percent of the basic salary. In 2017, the Board decided to make an additional pension payment of SEH 600 thousand to the CEO.
The contractual retirement age for CEO is 62. Retirement age for other senior executive position holders is 65. There are no other pension benefits besides the paid pension premiums.
Employment contracts and severance pay
CEO's employment contract carries a twelve-month notice for termination of employment from the company's side. During the period of termination, basic salary and other benefits shall apply, after which no benefits shall apply. After the notice period ends, severance pay equivalent to twelve months' salary shall be paid.
For other senior executives there is a notice period of six months in the event of dismissal by the company. After that period, six months' severance pay shall be paid. During the notice period, the employment contract with all benefits applies. When severance pay is paid out, no other benefits are payable.
Presentation of Executive management