Shareholding in Mycronic as per 30 June, 2022.
Executive management consists of eight persons including the CEO. The CEO leads the work of executive management which meets once a month. Issues addressed include financial performance, development projects, leadership and skills supply, and other strategic issues. The CEO is responsible for keeping the Board informed of the company’s development. Three global management meetings were organized in 2021 to strengthen unified communication and control throughout the Group. In addition to the executive management, there are several collaborative bodies that prepare and coordinate strategic and operational issues.
Remuneration to the CEO and other senior executives
The principles for remuneration to the CEO and other senior executives are approved by the Annual General Meeting. The proposed principles are prepared by the Board’s Remuneration Committee. The Board passes a decision on the proposed principles, which is then put to the Annual General Meeting for approval. The 2021 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 executive management team. The executive management team comprises of eight persons, including the CEO, of which three are women.
Guidelines for remuneration
The guiding principle is that Mycronic shall offer competitive remuneration and conditions of employment which enable the company to recruit and retain members of the executive management with the competence and capacity to achieve specified goals. To this end, the company must offer competitive remuneration to motivate the executive management.
. 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.
The remuneration and other terms of employment for members of the executive management shall be based on market terms and factors such as scope and complexity of the position in question as well as the individual’s performance is taken into account.
The total remuneration consists of the following parts:
- Fixed basic salary
- Short-term incentive program (STI)
- Long-term incentive program (LTI)
- Long-term incentive program (LTIP)
- Other benefits
- Employment terms and severance
Remuneration of the CEO and other senior executives 2020, SEK thousand
|Anders Lindqvist, CEO from 16 May 2019
|Other senior executives (8 persons)
During 2021, the base salary for the CEO amounted to SEK 470 thousand per month.
Short-term variable pay
The short-term variable pay for the CEO during the year amounted to SEK 5.5 million, and for other members of the executive management to SEK 9.6 million. The outcome for 2021 reached 88 percent of maximum amount. Short-term variable pay can amount to a maximum of 110 percent of base salary and 55 percent of total remuneration.
Long-term variable pay
Long-term variable pay refers to amounts paid during 2021, during the year SEK 0.6 million has been paid. The expensed amount during the year amounted to SEK 2.1 million. Members of the executive management can be offered incentive programs, which mainly should be share or share price-related. An incentive program is intended to improve the participants’ commitment to the company’s development and shall be introduced on market-based terms. Resolutions on share or share price-related incentive programs must be passed at an Annual General Meeting and are therefore not covered by these guidelines.
Long-term incentive program (LTIP)
The Board of Directors proposes that the Annual General Meeting resolves to introduce a long-term incentive program for 2022 (LTIP 2022). LTIP addresses members of the executive management and other key employees as a mean of increasing and strengthening opportunities to recruit, retain and motivate employees, and to encourage personal, long-term ownership in Mycronic. Each participant is entitled, after the end of a qualification period, subject to the employee still being employed throughout the qualification period until allotment, and depending on the fulfillment of specific performance requirements linked to Mycronic’s earnings per share, to receive an allotment of shares in Mycronic, referred to as performance shares. The allotment of performance shares will be free of charge. The allotment within LTIP 2022 will take place during a limited time period following the 2025 Annual General Meeting. The period up until this time constitutes the qualification period. In addition, allotment requires the fulfillment of performance requirements linked to Mycronic’s earnings per share. The number of shares is limited to a maximum of 8,900 for the CEO, 3,400 for the executive management, and 1,400 for key employees. In the event of a maximum allotment and participation, the program will encompass maximum 125,500 shares.
Other benefits consists of a car benefit and health insurance.
Pension benefits are premium-based. Members of the executive management employed in Sweden after 2012 are covered by the contribution-defined plan under ITP1. Members of the executive management employed prior to 1 January 2022 have a supplementary contribution-defined pension plan in addition to the ITP plan. The contractual retirement age is 65 years for members of the executive management employed in Sweden. For members of the executive management employed outside of Sweden, locally competitive pension plans and retirement ages are applied. The pension premium for the CEO is limited to 35% of base salary.
Notice of termination and severance pay
The employment or contractual agreements of members of the executive management shall be valid until further notice or for a specified period of time. For the CEO, in the event of termination by the company, a twelve months notice period and twelve months of severance pay applies. For members of the executive management employed in Sweden, the mutual notice period is a maximum of six months. Upon termination by the company, six months’ severance pay also applies. During the notice period, the current employment contract runs with associated benefits. In cases where severance pay would be paid, no other benefits will be paid after the expiry of the notice period. For other members of the executive management who are locally employed outside of Sweden, employment or contractual agreements shall comply with mandatory rules applicable in the relevant jurisdiction or local practice, entailing that e.g. other terms of the employment (or term of the contract as the case may be), other notice periods and other agreements on severance pay may be applicable in the individual case.