Saab 2011 Annual Report Download - page 119

during the same period. If the President resigns voluntarily, there is a six-
month period of notice with salary and pension benets, but no severance pay.
e President’s agreement contains a non-compete clause.
Remuneration to other senior executives
e group of other senior executives included  individuals () in , con-
sisting of the Executive Vice Presidents, heads of the business areas and heads
of Group stas. Carina Brorman took over as the new Head of Group Com-
munications on October. At the turn of /, Group Management there-
fore consisted of  persons, including the .
e salaries paid to other senior executives consist of a xed portion. e
previous short-term variable portion has been discontinued as of  in
accordance with the resolution of the Annual General Meeting. Compensa-
tion issues regarding the other senior executives are prepared by the Head of
Group Human Resources and presented to the President, who makes a deci-
sion pending the approval of the Compensation Committee and the Board.
During the period November  through October , other senior
executives participated in the Saab Share Matching Plan approved by the 
Annual General Meeting for all company employees. e Saab Share Match-
ing Plan  was concluded in November . Since November  all eli-
gible executives have participated in the Saab Global Performance Share Plans
approved by the Annual General Meetings in ,  and . Outstand-
ing matching rights in the Saab Global Performance Share Plan  amount
to   () as of  December , while the Saab Global Performance Share
Plan  amounts to  ,, (,) and the Saab Global Perfor-
mance Share Plan  amounts to  , at a estimated outcome.
During the year, three members of Group Management received total
variable cash remuneration of  ,, before tax for their extraordinary
performance in .
In , the other senior executives received salaries and other benets
totalling  ,, (,,), of which other benets, including per-
formance share plans, accounted for  ,, (,).
Pension terms
As of  January , a pension age of  years applies to new executives.
Among other senior executives, two individuals have a pension age of
years.
In addition to  or its equivalent,  members of the group () are aliated
with the Saab plan, which is dened-contribution and vested. e Saab plan
provides pensions benets over and above  or its equivalent on salary levels
between  and  basic amounts as well as on salary segments over  basic
amounts. e individuals themselves can decide on the payment term, though
within the provisions of Swedish income tax law. Moreover, an insurance pol-
icy nances the period between the ages of  or  years and  years.
e pension cost for Saab consists of pension premiums, which are based
on a percentage of qualifying salaries. e percentage rate is determined by
each executive’s time remaining until the pension age,  or  years, when
joining the plan. e aggregate insurance balance should cover a targeted
pension from  years of approximately . per cent of salary levels between
 and  basic amounts and approximately  per cent of segments over 
basic amounts of qualifying salaries. Premium payments continue as long as
the individuals remain in their positions or as employees of the company.
Pension obligations are vested. In , pension costs for other senior
executives, including  and its equivalent, amounted to  ,,
(,,). Other senior executives are entitled, or obliged if the company
so requests, to retire on pension as of the age of  or  years.
Severance terms
If terminated by the company, the group of other senior executives will receive
a salary and pension benets for six months (period of notice). ereaer
they will receive severance pay equivalent to  months of salary, based on
their xed salary. Severance is paid monthly with the rst payment in the
month aer employment has ended. Severance is not paid for the period that
falls aer the contractual pension age. Employees hired before  January 
who have reached the age of  are entitled to another six months of severance.
e salary during the period of notice and severance will be deducted
from income received from other employment during the same period. If
they resign voluntarily, there is a six-month period of notice with salary and
pension benets, but no severance pay.
Other benets
All senior executives have a company car and medical insurance. Several sen-
ior executives also have benets in the form of overnight housing and travel.
Summary of compensation and other benefits during 2011
SEK
Base salary/
Board and
Committee fee
Variable
compen sation
Performance
Share Plan Other benefits 6) Pension cost Total
Provisions 2011 for
long-term variable
compensation at
estimated outcome
Chairman of the Board
Marcus Wallenberg 1,180,000 - - - - 1,180,000 -
Deputy Chairman
Sten Jakobsson 505,000 - - - - 505,000 -
Other Board members 1)
Åke Svensson 425,000 - - - - 425,000 -
Johan Forssell 525,000 - - - - 525,000 -
Per-Arne Sandström 575,000 - - - - 575,000 -
Cecilia Stegö Chilò 425,000 - - - - 425,000 -
Lena Treschow Torell 560,000 - - - - 560,000 -
Joakim Westh 525,000 - - - - 525,000 -
Michael O’Callaghan 7) ------ -
President and CEO Håkan Buskhe 4) 8,663,247 - 520,042 1,158,219 2) 3,187,551 13,529,059 535,647
Other senior executives 4) 41,898,577 5) 2,393,866 3) 2,365,683 1,747,003 16,127,093 5) 64,532,222 3,041,908
Total 55,281,824 2,393,866 2,885,725 2,905,222 19,314,644 82,781,281 3,577,555
1) Excluding consultant’s fee payed to member of the Board.
2) Including benefits for air travel described in the administration report on page 68.
3) Including remuneration to two senior executives, which, according to their contracts, was paid in the form of pension premiums.
4) In addition, cash payments related to bonuses for 2010 were made in the amount of SEK 3,665,530.
5) Including estimated remuneration allocated for seniors executives who leave Group Management in 2012.
6) Including compensation for the additional costs the benefits lead to.
7) Employed by BAE Systems. Resigned on June 16 2011, as a result of BAE System’s sale of its shareholding in Saab.
Guidelines for remuneration and other benets for senior executives are described in the nancial review.
NOTE 37, CONT.
FINANCIAL INFORMATION > NOTES
SAAB ANNUAL REPORT 2011 115