Electrolux 2010 Annual Report Download - page 162

Synthetic shares
The AGM in 2010 decided that a part of the fees to the Board of
Directors should be payable in synthetic shares. A synthetic share
is a right to receive in the future a payment corresponding to the
stock-market value of a B-share in Electrolux at the time of pay-
ment. In accordance with the fee structure laid down by the AGM,
the Directors have for the 2010/2011 term of office been given the
choice of receiving 25% or 50% of the fees for the Board assign-
ment in synthetic shares. The remaining part of the fees to the
Directors is paid in cash. Foreign Directors have been able to elect
to receive 100% of the fee in cash. The synthetic shares entail a
right to payment, in the year 2015, of a cash amount per synthetic
share corresponding to the price for a B-share in Electrolux at the
time of payment. Should a Director’s assignment end not later
than four years after the time of allocation, cash settlement may
instead take place during the year after the assignment came to
an end. The elections made by the Directors mean that on aver-
age 25% of the fees for the Board assignment for 2010/2011 is
allocated in the form of (in total) 7,374 synthetic shares. At the end
of 2010, a total of 34,465 (26,519) synthetic shares were outstand-
ing, having a total value of SEK 6.6m (4.4). The accrued value of
the synthetic shares has been calculated as the number of syn-
thetic shares times the volume weighted average price of a
B-share in Electrolux as of December 31, 2010. The cost from
revaluation of synthetic shares during 2010, was SEK 0.8m. No
cash settlements took place in 2010.
Remuneration Committee
The working procedures of the Board of Directors stipulate that
remuneration to the President be proposed by a Remuneration
Committee. The Committee comprises the Chairman of the
Board and two additional Directors. During 2010, the Committee
members were Barbara Milian Thoralfsson (Chairman), Marcus
Wallenberg and Johan Molin.
The Remuneration Committee establishes principles for remu-
neration for the President and the other members of Group Man-
agement, subject to subsequent approval by the AGM. Proposals
on the President’s remuneration submitted by the Remuneration
Committee to the Board include targets for variable compensation,
the relationship between fixed and variable salary, changes in
fixed or variable salary, criteria for assessment of long-term variable
salary, pensions and other benefits. The Remuneration Committee
In accordance with the regulations in the Swedish Annual Accounts
Act, in effect as of July 1, 2003, absence due to illness for employ-
ees in the Parent Company and the Group in Sweden is reported
in the table above. The Parent Company comprises the Group’s
head office as well as a number of units and plants, and employs
approximately 75% of the Group’s workforce in Sweden.
Compensation to the Board of Directors
The Annual General Meeting (AGM) determines the total compen-
sation to the Board of Directors for a period of one year until the
next AGM. The compensation is distributed between the Chair-
man, Deputy Chairman, other Board Members and remuneration
for committee work. The Board decides the distribution of the
committee fee between the committee members. Compensation
is paid out in advance each quarter. Compensation paid in 2010
refers to one fourth of the compensation authorized by the AGM
in 2009, and three fourths of the compensation authorized by the
AGM in 2010. Total compensation paid in cash in 2010 amounted
to SEK4,617k, of which SEK 4,017k referred to ordinary compen-
sation and SEK 600k to committee work. The Board member
Hasse Johansson was paid a fee of SEK 15,000 for consultancy
services relating to the Groups work on modularization.
Compensation to Board members 2010
‘000 SEK
Ordinary
compen-
sation
Compen-
sation for
committee
work
Total
compen-
sation
Marcus Wallenberg, Chairman 1,600 55 1,655
Peggy Bruzelius, Deputy Chairman 550 200 750
Lorna Davis (as from the AGM 2010) 356 — 356
Hasse Johansson 475 — 475
John S. Lupo 475 — 475
Johan Molin 475 55 530
Hans Stråberg, President — — —
Caroline Sundewall 475 85 560
Torben Ballegaard Sørensen 475 85 560
Barbara Milian Thoralfsson 475 120 595
Ola Bertilsson — — —
Gunilla Brandt — — —
Ulf Carlsson — — —
Total compensation 2010 5,356 600 5,956
Revaluation of synthetic shares from
previous assignment period 849 — 849
Total compensation cost 2010
including revaluation of synthetic
shares 6,205 600 6,805
Employee absence due to illness
2010 2009
%Employees in the Parent Company All employees in Sweden Employees in the Parent Company All employees in Sweden
Absence due to illness, as % of
total normal working hours 4.8 4.2 5.2 4.9
Of which 60 days or more 45.3 44.8 52.5 52.2
Absence due to illness, by category1)
Women 6.6 6.1 7.7 7.0
Men 3.3 3.1 3.7 3.8
29 years or younger 1.8 1.9 2.4 2.3
30–49 years 4.5 4.1 5.3 5.0
50 years or older 5.5 5.0 5.8 5.4
1) % of total normal working hours within each category, respectively.
annual report 2010 | part 2 | notes, all amounts in SEKm unless otherwise stated
Cont. Note 27
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