Saab 2010 Annual Report Download - page 110
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Please find page 110 of the 2010 Saab annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.For compensation committee work, committee chairman Lena Treschow
Torell also received fees of , (,) and committee member
Marcus Wallenberg , (,). George Rose has declined his fees
with reference to Systems’ policy.
In his capacity as a consultant, Board member Per-Arne Sandström
received , from Saab through March for consulting
services related to organisational development, and hence the assignment has
been completed.
Remuneration to the President
e salary paid to President and consists of a xed portion and a variable
portion. e variable portion is based on predetermined quantitative and
qualitative objectives each year. e variable compensation can amount to a
maximum of per cent of the President’s xed salary. e preparation proc-
ess for compensation issues regarding the President is handled by the Board’s
Remuneration Committee according to the principles laid down by the
Annual General Meeting and then voted on by the Board.
On August , President and Åke Svensson decided to leave the
company.
During the period November through October , Åke Svensson
participated in the Saab Share Matching Plan approved by the Annual
General Meeting for all company employees. From November , Åke
Svensson participated in the Saab Global Performance Share Plan approved
by the and Annual General Meetings. Since Åke Svensson stepped
down from his position with the company on his own initiative, he has relin-
guished his right to matching shares as part of the plans.
During the period January through August , Åke Svensson
received salary, variable compensation and other benets totalling
,, (,,), of which the variable compensation for
accounted for ,, (,) and paid outstanding holiday
,, and other benets, including a car allowance, for
,(,). During a transition period from September through
April , aer his employment as President and concluded, Åke Sven-
sson has undertaken to assist the new and Group Management for a total
fee of ,. During the period September through December
, Åke Svensson received consulting fees from Saab of , for
these services. e assignment will be completed in April .
On September , Håkan Buskhe took over as President and . He
receives a salary and pension benets as of August .
e President participates as of September in the Saab Global Per-
formance Share Plan approved by the Annual General Meeting. Out-
standing matching rights in the Saab Global Performance Share Plan
amount as of December to ,.
During the period August through December , the President
received salary and other benets totalling ,,, of which other ben-
ets, including a car allowance, amounted to ,.
Pension terms
e retirement age for the President is . e President has a dened-contri-
bution pension plan. He may decide himself on the payment term, though
within the provisions of Swedish income tax law. e pension cost for Saab
consists of pension premiums amounting to per cent of xed salary as long
as the President remains an employee of the company. To this is added the
cost of pension premiums according to the plan. e pension commit-
ment is vested.
For , the cost of Åke Svensson’s pension, including , was
,, (,,).
For , the cost of President Håkan Buskhe’s pension, including , was
,,.
Severance terms
If terminated by the company, the President will receive a salary and pension
benets for a period of six months (period of notice). ereaer he will receive
severance pay equivalent to one year of salary, based on his current xed sal-
ary. If the President does not obtain new employment, he will receive an addi-
tional six months of severance pay. e salary during the period of notice and
severance will be deducted from income received from other employment
during the same period. If the President resigns voluntarily, there is a six-
month period of notice with salary and pension benets, but no severance pay.
Remuneration to other senior executives
e group of other senior executives included individuals () in , con-
sisting of the Executive Vice Presidents, heads of the business areas and heads
of Group stas. Cecilia Schön-Jansson stepped down from Group Manage-
ment on November. Marketing ocer Jonas Hjelm was appointed acting
Head of Communications. At the turn of /, Group Management
therefore consisted of persons, including the .
e salaries paid to other senior executives consist of a xed portion and a
variable portion. e variable portion is based on the Group’s order bookings,
operating income and cash ow. e variable compensation normally
amounts to a maximum of per cent of each executive’s xed salary, and in
some cases to per cent of xed salary. A variable compensation agreement is
draed annually and signed by the President. e rules for variable compensa-
tion are stipulated in a document issued by the President. Compensation
issues regarding the other senior executives are prepared by the head of human
resources and presented to the President, who makes a decision pending the
approval of the Compensation Committee and the Board. During the period
November through October , other senior executives participated
in the Saab Share Matching Plan approved by the Annual General Meet-
ing for all company employees. From November , all eligible executives
participate in the Saab Global Performance Share Plan approved by the
Annual General Meeting. Accumulated outstanding matching rights in Saab
Share Matching Plan amount to , (,) as of December
. e Saab Global Performance Share Plan amounts to
(,) as of December , while the Saab Global Performance Share
Plan amounts to , in the event of a maximum outcome.
In , the other senior executives received salaries, variable compensa-
tion and other benets totalling ,, (,,), of which variable
compensation for accounted for ,, (,,) and other
benets, including housing and car allowances, for , (,).
Pension terms
As of January , a pension age of years applies to new executives.
Among other senior executives, three individuals have a pension age of
years.
In addition to or its equivalent, members of the group () are ali-
ated with the Saab plan, which is dened-contribution and vested. e Saab
plan provides pensions benets over and above or its equivalent on salary
levels between and basic amounts as well as on salary segments over
basic amounts. e individuals themselves can decide on the payment term,
though within the provisions of Swedish income tax law. Moreover, an insur-
ance policy nances the period between the ages of or years and years.
e pension cost for Saab consists of pension premiums, which are based
on a percentage of qualifying salaries. e percentage rate is determined by
each executive’s time remaining until the pension age, or years, when
joining the plan. e aggregate insurance balance should cover a targeted
pension from years of approximately . per cent of salary levels between
and basic amounts and approximately per cent of segments over
basic amounts of qualifying salaries. Premium payments continue as long as
the individuals remain in their positions or as employees of the company.
Pension obligations are vested. In , pension costs for other senior
executives, including and its equivalent, amounted to ,,
(,,). Other senior executives are entitled, or obliged if the company so
requests, to retire on pension as of the age of or years.
Severance terms
If terminated by the company, the group of other senior executives will receive
a salary and pension benets for six months (period of notice). ereaer
they will receive severance pay equivalent to months of salary, based on
their xed salary. Severance is paid monthly with the rst payment in the
month aer employment has ended. Severance is not paid for the period that
falls aer the contractual pension age. Employees hired before January
who have reached the age of are entitled to another six months of severance.
e salary during the period of notice and severance will be deducted
from income received from other employment during the same period. If
they resign voluntarily, there is a six-month period of notice with salary and
pension benets, but no severance pay.
NOTE 37, CONT.
FINANCIAL INFORMATION > NOTES
SAAB ANNUAL REPORT 2010 107