Shareholding in Mycronic is as per 30 September, 2019.
Group management consists of nine persons including the CEO. The CEO leads the work of Group management which meets every other week to take collective decisions. 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. Three times per year, a global management meeting is organized to strengthen unified communication and control throughout the Group. In addition to executive management, there are several collaborative bodies that prepare and coordinate strategic and operational 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 2019 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 2018, SEK thousand
|Lena Olving, CEO
|Other senior executives (8 persons)
Fixed basic salary
The fixed salary for the CEO in 2018 was SEK 360,775 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 2018, STI amounted to SEK 2,940 thousand for the CEO and SEK 3,843 thousand for other senior executives. The outcome of STI for 2018 reached 84 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.
Long-term incentive program (LTIP)
Each participant is entitled, after the end of the qualification period, subject to the employee still being employed, and depending 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 allotment of performance shares to participants will be free of charge.
The allotment of performance shares within LTIP 2019 will take place during a limited period following the 2022 AGM. The period until this date will form the qualification period. One prerequisite for participants to be entitled to allotment of performance shares, is that participants continue to be employed by Mycronic throughout the qualification period until allotment. In addition, allotment of performance shares requires the fulfillment of performance requirements linked to Mycronic’s EPS. The number of shares is limited to a maximum of 13,700 for the CEO, 5,200 for senior executives and 2,100 for other key personnel. In the event of a maximal allotment and participation, the program will encompass 183,400 shares.
Other benefits consist of a company car and health insurance.
Pension and health insurance benefits are premium-based. For the CEO, the cost for pension and health insurance benefits can amount to a maximum of 35 percent of the basic salary. For other senior executives, pension and health insurance can amount to a maximum of 30 percent of the basic salary. In 2018, the Board decided to make an additional pension payment of SEK 600 thousand to the CEO.
The contractual retirement age is 65. There are no other pension benefits other than paid pension premiums.
Employment terms and severance
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.