Volvo 2014 Annual Report Download - page 164

160
Long-term incentive
program (equity-settled
plan version)
Shares granted conditional under the plan but not yet allotted (in thousand shares)
Vesting year
Beginning of
the year Granted 2014 Cancelled/ forfeited 2014 Allotments during 2014
End of the
year Cost 2014 (SEK M)
1
Year 2011 incentive program 2014/2015 1,847 –(69)(1,196)582 33.6
Year 2012 incentive program 2015/2016 1,157 –(28) (31)1,098 29.5
Year 2013 incentive program 2016/2017 418 28 (9) (12) 425 2.5
Year 2014 incentive program 2017/2018 –468 (27) – 441 10.1
Total 3,422 496 (133) (1,239) 2 ,546 75.7
1 The fair value of the payments is determined based on the share price at the grant date reduced by the discounted value of expected dividends connected with the
share during the vesting period. The cost for the program is recognized over the vesting period. The cost includes social security cost.
Average number
of employees
2014 2013
Number of
employees of which women, % Number of employees of which women, %
AB Volvo
Sweden 303 48 262 45
Subsidiaries
Sweden 21,113 21 21,834 20
Western Europe
(excl. Sweden) 23,390 16 23,919 16
Eastern Europe 6,292 20 6,327 22
North America 14,767 19 16,175 18
South America 6,718 14 6,852 14
Asia 19,306 13 18,912 12
Other countries 2,735 15 2,661 15
Group total 94,6251796,95117
The average number of employees calculation has been harmonized
across the Volvo Group in 2014. Comparative fi gures have been restated
accordingly.
Board members1 and other
senior executives
2014 2013
Number
at year-
end
of which
women,
%
Number
at year-
end
of which
women,
%
AB Volvo
Board members1922 12 17
CEO and other senior executives 16 19 16 19
Volvo Group
Board members1499 20 580 17
Presidents and other
senior executives 676 21 695 19
1 Excluding deputy Board members.
The cost for the cash-settled version of the incentive program amounted
to SEK 8 M (5) including social security cost during 2014, and the total
liability amounted to SEK 14 M (19) as of December 31, 2014.
The allotment during the year 2014 mainly pertained to the shares
granted under the program during the year 2011. In addition to that a
number of program participants leaving the company are determined to
be “good leavers” and are therefore entitled to accumulated allotment of
shares. During 2014, for the equity-settled plan, a total of 1,238,755
shares (420,856) have been allotted to participants, and an additional
53,036 shares (10,986) are allotted to participants when the employees
leave the company. For the cash-settled plan, a total of SEK 15 M (4) has
been allotted during 2014.
The total cost for the 2014 incentive program over the vesting period
2014 to 2017/2018 is estimated to SEK 46 M including social security
cost. Actual cost will be impacted by changes in the share price.
Wages, salaries and other
remunerations 2014 2013
SEK M
Board and
Presidents1
of which variable
salaries
Other
employees
Board and
Presidents1
of which variable
salaries
Other
employees
AB Volvo 30.4 7.4 323.6 25.9 5.6 265.2
Subsidiaries 557.0 57.2 36 ,621.9 563.1 52.7 35, 357.3
Group total 587.4 64.6 36,945.5 589.1 58.3 35,622.4
Wages, salaries and other
remunerations and social
costs 2014 2013
SEK M Wages, salaries remun Social costs Pension costs Wages, salaries remun Social costs Pension costs
AB Volvo2354.1 108.6 105.6 291.1 87.3 91.6
Subsidiaries 37,178.9 8,009.3 4,027.2 35,920.4 8,174.9 4,052.1
Group total337,532.9 8,117.9 4,132.8 36,211.5 8,262.2 4,143.7
1 Including current and former Board members, Presidents and Executive
Vice Presidents.
2 The Parent Company’s pension costs, pertaining to Board members and
Presidents are disclosed in Note 3 in the Parent Company.
3 Of the Volvo Group’s pension costs, SEK 78 M (97.7) pertain to Board members
and Presidents, including current and former Board members, Presidents and
Executive Vice Presidents. The Volvo Group’s outstanding pension obligations
tothese individuals amount to SEK 448 M (418.1).
The cost for non-monetary benefi ts in the Volvo Group amounted to SEK 2,405 M
(1,960.3) of which SEK 46 M (50.5) to Board members and Presidents.
The cost for non-monetary benefi ts in the Parent Company amounted to SEK
17.3 M (15.2) of which SEK 2 M (1.8) to Board members and Presidents.
FINANCIAL INFORMATION 2014