Electrolux 2014 Annual Report Download - page 147

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Major issues addressed by the President and Group
Management in 
• Electrolux growth strategy.
• Acquisition of the appliances business of General Electric, one
of the premier manufacturers of kitchen and laundry products in
the United States.
• Actions to reduce over-head costs, mainly related to Major
Appliances EMEA.
• Manufacturing footprint restructuring.
• Improving efficiency within production through modularization.
• More rapid process for new products.
• Project to improve capital efficiency.
• Acquisition of Australian-based barbeque business.
Business
Area Boards
Business areas
The business area heads are comprised
of members of Group Management
and have responsibility for the operat-
ing income and net assets of their respective business area.
The overall management of the business areas is the
responsibility of business area boards, which meet quarterly.
The President is the chairman of all such boards. The busi-
ness area board meetings are attended by the President, the
management of the respective business area and the Chief
Financial Officer. The business area boards are responsible
for monitoring on-going operations, establishing strategies,
determining business area budgets and making decisions on
major investments.
Remuneration to Group Management
Remuneration guidelines for Group Management are resolved
upon by the AGM, based on the proposal from the Board.
Remuneration to the President is then resolved upon by the
Board, based on proposals from the Remuneration Commit-
tee. Changes in the remuneration to other members of Group
Management is resolved upon by the Remuneration Commit-
tee, based on proposals from the President, and reported to
the Board.
Electrolux shall strive to offer total remuneration that is fair
and competitive in relation to the country of employment or
region of each Group Management member. The remunera-
tion terms shall emphasize “pay for performance”, and vary
with the performance of the individual and the Group.
Remuneration may comprise of:
• Fixed compensation.
• Variable compensation.
• Other benefits such as pension and insurance.
Following the “pay for performance” principle, variable
compensation shall represent a significant portion of the total
compensation opportunity for Group Management. Variable
compensation shall always be measured against pre-de-
fined targets and have a maximum above which no pay-out
shall be made. The targets shall principally relate to financial
performance.
Each year, the Board of Directors will evaluate whether or
not a long-term incentive program shall be proposed to the
AGM. The AGM  decided on a long-term share program
for up to  senior managers and key employees.
For additional information on remuneration, remuneration guidelines, long-term incentive
programs and pension benefits, see Note .
Start
Performance period
123
Invitations to
participants in
the program.
Performance
shares allotted.
Year
Time-line for the long-term incentive program for senior management 
The calculation of the number of perfor-
mance shares, if any, is connected to three
performance targets for the Group estab-
lished by the Board; (i) earnings per share
(ii) return on net assets, and (iii) organic
sales growth, for the  financial year.
Allotment of performance shares, if any, to
the participants will be made in .
   
ELECTROLUX – ANNUAL REPORT 2014