Saab 2011 Annual Report Download - page 70

66 SAAB ANNUAL REPORT 2011
ADMINISTRATION REPORT > OTHER INFORMATION
CORPORATE
Corporate reported operating income of MSEK 916 (-206). 2011
included a capital gain of MSEK 13 from the sale of Image Sys-
temsAB to Digital Vision AB and an additional consideration of
MSEK 60 for the divestment of Saab Space. It also included a capital
gain of MSEK 916 from the divestment of the shares in the 3D
mapping technology company, C3 Technologies AB. C3 Technolo-
gies was created by Saab Ventures in 2008 and the technology is
based on Saab’s, in particular the business area Saab Dynamic’s,
more than 40 years of experience in image processing for target
seekers and expertise in navigation systems.
Operating income also included costs of MSEK 25 related to the
acquisition process of Sensis.
In addition, Saab Aircra Leasing completed several sales in-
volving Saab aircra and booked reversals of risk provisions related
to these transactions, which impacted earnings positively.
GUIDELINES FOR REMUNERATION AND OTHER TERMS OF
EMPLOYMENT FOR SENIOR EXECUTIVES 2011
According to the Swedish Companies Act, the Board of Directors shall
to each Annual General Meeting propose guidelines for determin-
ing salaries and other remuneration for the President and CEO and
other senior executives in the Company. e Annual General Meeting
2011 adopted the Board of Directors’ proposed guidelines for such
remuneration. is group comprises the President and Chief Executive
Ocer and other members of the Group Management, as dened on
the Company’s website (www.saabgroup.com). In some special cases,
these guidelines may also comprise Board Members of Saab AB, as
described below.
Saab shall oer market terms, enabling the Company to recruit
and retain senior executives. To the greatest extent possible,
remuneration structures shall be characterized by predictability
with respect to both the cost for the Company and the benet
for the employee. ey shall be based on factors such as position,
competence, experience and performance. Benchmarking shall be
practiced regularly relative to comparable industries and markets.
e Board shall be entitled to divert from the guidelines, if there
are reasonable grounds to do so in an individual case.
e Board’s proposal is based mainly on agreements in eect be-
tween Saab AB and individual executives. No board fees are paid to
members of the Group Management for participation on the boards
of the business areas or Saab subsidiaries.
e Remuneration Committee is responsible for developing
and reviewing remuneration and other employment terms for the
Group Management.
ese guidelines apply from the Annual General Meeting 2011. In
terms of xed salary, the guidelines shall apply from 1 January 2011.
Fixed remuneration
Cash remuneration shall consist of xed salary. e xed salary
shall be reviewed annually as per 1 January for all members of the
Group Management. e xed salary shall be at market terms and
based on factors such as position, competence, experience and
performance.
Variable remuneration
It is important that senior executives have a long-term view and a
long-term commitment in the Company’s operations and prots.
erefore long-term incentive is especially well suited to Saab and
its shareholders.
e President and CEO and senior executives are entitled to
participate in the long-term incentive programs resolved by the
Annual General Meeting.
In extraordinary cases, agreements of a one-time nature for
variable cash remuneration may be made provided that such agree-
ments are made solely on an individual base for recruitment or
retention purposes, or as compensation for extraordinary eorts
beyond the individual’s ordinary assignment. Such remuneration
shall never exceed the amount of the xed annual salary and shall
not be paid more than once a year per individual. Resolutions on
such cash remuneration shall be made by the Board based on a
proposal from the Remuneration Committee.
Variable cash remuneration shall not be paid in other cases.
Other benefits
All members of the Group Management are entitled to a company
car according to Saab’s regulations.
Pension
For pension agreements entered into aer 1 January 2005, the
pension age is 62. In addition to the ITP agreement, the pension
is part of a dened contribution plan where provisions are made
annually. For the President and CEO, the provision is equivalent to
35 per cent of his xed salary, and for other executives the percent-
age is based on a set of regulations in the so-called Saab plan. e
percentage is dependent on the number of years remaining until
the age of retirement upon joining the plan.
OTHER INFORMATION