Shareholding in Mycronic as per 30 September, 2021.
Group management consists of nine persons including the CEO. The CEO leads the work of Group management which meets once a month. Issues addressed include financial performance, development projects, leadership and skills provision and other strategic issues. The CEO is responsible for keeping the Board informed of the Company’s development. Two global management meetings were organized in 2020 to strengthen unified communication and control throughout the Group. In addition to group 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 2020 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 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 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 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)
Fixed basic salary
The fixed salary for the CEO in 2020 was SEK 410,000 per month.
Short-term incentive program (STI)
STI is paid according to the fulfillment of Group targets and may amount to a maximum of 100 percent of the basic salary. For 2020, STI to the CEO amounts to SEK 1,775 thousand and to other senior executives SEK 4,752 thousand. The outcome of STI for 2020 reached 40 percent of the maximum amount.
Long-term incentive programs, LTI and LTIP
The company has for some time had an annual recurring share-based incentive program (LTI), with one remaining years outstanding in 2020. The amount paid was SEK 1,149 thousand in 2020. The 2019 Annual General Meeting resolved to replace the LTI program with a new program, LTIP. The program gives each senior executive the right, after the end of the qualification period, subject to the employee still being employed and dependent on the fulfillment of specific performance requirements linked to Mycronic’s earnings per share, to receive an allotment of common shares in Mycronic, referred to as performance shares. The cost for the LTIP program amounted to SEK 1,968 thousand in 2020.
Other benefits consists of a company car and free health care insurance.
Pension and health insurance benefits are premium-based. The contractual retirement age is 65 for the CEO and other senior executives. There are no other pension benefits other than paid pension premiums.
Employment terms and severance
The employment contract with the CEO specifies a notice period of twelve months in the event of dismissal by the company. The CEO is entitled to fixed salary and other benefits during the notice period. No benefits are payable after this period. After the notice period, the CEO is entitled to termination benefits corresponding to twelve months’ salary. For other senior executives, a period of notice of six months and six months’ severance pay apply upon termination by the company. The employment contract, with related benefits, is valid during the notice period.