The Board proposes that the 2008 Annual General Meeting resolves to adopt the principles below relating to remuneration and other conditions of employment for senior executives of the Company with contracts that are signed or modified after the Annual General Meeting.
By "senior executives of the Company" is meant the President/CEO and other members of the senior management group.
Salary and other benefits
The Board proposes that remuneration to senior executives of the Company be based on market conditions at the same time as it supports the interests of the Company's owners. Remuneration shall, in the main, consist of a fixed salary element, a variable salary element, pension benefits and other benefits; for example, use of a Company car. The guidelines for remuneration are intended to ensure that ÅF can attract and retain the best available resources in order to support the ÅF mission and strategy.
The fixed salary element shall be determined with regard to personal skills, scope of responsibility and achievements, and shall be based on market conditions.
The variable salary element shall be based on a performance-based programme and shall be set at a rate of between 60 and 100 percent of the individual's fixed annual salary. The variable salary element shall not qualify as income for pension purposes.
Period of notice and severance pay
The period of notice shall be six months on the employee's side. In the event that notice is issued by the Company, the period of notice and the time during which severance pay is paid out shall not together exceed a total of 24 months.
Pension benefits shall be in the form of either defined-benefit or defined-contribution retirement plans, or a combination of the two. The standard retirement age is 65 years. In the event that a senior executive of the Company retires before pensionable age, he or she shall be given a paid-up policy from the age of 60.
Issues relating to remuneration to senior executives of the company are dealt with by a Remuneration Committee and, in matters relating to the President/CEO, are finally determined by the Board of Directors.
Deviations from the guidelines in individual instances
The Board of Directors also proposes that the Annual General Meeting authorises the Board to deviate from the guidelines for remuneration drawn up by the Annual General Meeting, if there are special reasons for so doing in individual instances.
For information regarding previously resolved compensation which has not become due for payment, a reference is made to note 8 in the Company’s annual report of 2007.
Stockholm, 9 April 2008
AB ÅNGPANNEFÖRENINGEN (publ)
The Board of Directors