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THE VOLVO GROUP · NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
74
In accordance with a resolution adopted at the Annual
General Meeting, the fee paid to the Board of Directors
is a fixed amount of SEK 3,250,000, to be distributed as
decided by the Board. The Chairman of the Board, Lars
Ramqvist, receives a fee of SEK 1,000,000.
In 2001, Leif Johansson, President and Chief
Executive Officer, received SEK 9,597,900 in salary and
other benefits amounting to SEK 520,838. The bonus in
2000 was SEK 534,600 and will be saved for five years.
The bonus for 2001 was SEK 1,640,000. This bonus,
including a 6% upward adjustment, a total of SEK
1,738,400 was allocated to pension. In 2001, Leif
Johansson received 13,600 employee stock options.
Leif Johansson is eligible to take retirement with pension
at age 55. Pension benefits are earned gradually over
the years up to the employee’s retirement age and are
fully earned at age 55. During the period between the
ages of 55 and 65, he would receive a pension equal to
70% of his pensionable salary, and a pension amounting
to 50% of his pensionable salary after reaching the age
of 65. The pensionable salary is the sum of 12 times the
current monthly salary, Volvo’s internal value for company
car, and a five year rolling annual average of earned
bonus which is limited to a maximum of 50% of the
annual salary. Leif Johansson has twelve months notice
of termination from AB Volvo and six months on his own
initiative. If Leif Johansson’s employment is terminated
by AB Volvo, he is entitled to a severance payment equal
to two years’ salary, plus bonus. The severance payment
will be adjusted for any income after the termination of
his contract with Volvo.
In 2001, Sören Gyll, President and Chief Executive
Officer up to and including April 22, 1997, received a car
benefit amounting to SEK 69,100. Sören Gyll continued
to serve the Group until December 31, 1997 and then
retired on pension.
Leif Johansson, the Group Executive Committee,
members of the executive committees of subsidiaries
and a number of key executives receive bonuses in addi-
tion to salaries. Bonuses are based on the income and
cash flow of the Volvo Group and/or of the executive’s
company, in accordance with the bonus system estab-
lished by the Volvo Board in 1993 and reviewed in 2000.
A bonus may amount to a maximum of 50% of an
executive’s annual salary.
The employment contracts of certain senior execu-
tives contain provisions for severance payments when
employment is terminated by the Company, as well as
rules governing pension payments to executives who take
early retirement. The rules governing early retirement
Note 30 Personnel
At December 31, 2001, future rental income from non-
cancellable financial and operating leases (minimum
leasing fees) amounted to 31,109 (26,445; 19,910), of
which 30,161 (25,664; 19,383) pertains to customer-
financing companies. Future rental income is distributed
as follows:
Financial leases Operating leases
2002 6,797 4,238
2003–2006 11,534 7,129
2007 or later 323 1,088
Total 18,654 12,455
Allowance for uncollectible
future rental income (252)
Unearned rental income (955)
Present value of future
rental income 17,447
At December 31, 2001, future rental payments (mini-
mum leasing fees) related to noncancellable leases
amounted to 5,192 (4,385; 5,328).
Future rental payments are distributed as follows:
Financial leases Operating leases
2002 440 1,019
2003–2006 1,058 1,771
2007 or later 140 764
Total 1,638 3,554
Rental expenses amount to:
1999 2000 2001
Financial leases:
– Contingent rents – (1) (4)
Operating leases:
– Contingent rents – (80) (82)
– Rental payments – (837) (899)
– Sublease payments – 1 14
Total (1,193) (917) (971)
Book value of assets subject to finance lease:
2000 2001
Acquisition costs:
Buildings 48 71
Land and land improvements 26 40
Machinery and equipment 12 23
Assets under operating lease 2,217 2,330
Total 2,303 2,464
Accumulated depreciation:
Buildings (3) (14)
Land and land improvements (2) (8)
Machinery and equipment (4) (11)
Assets under operating lease (1,022) (914)
Total (1,031) (947)
Book value:
Buildings 45 57
Land and land improvements 24 32
Machinery and equipment 8 12
Assets under operating lease 1,195 1,416
Total 1,272 1,517
Note 29 Leasing