Saab 2012 Annual Report Download - page 109

Recognised expense for above-mentioned plan,
including social security expenses 2012 2011
Share Matching Plan 2007 - 22
Share Matching Plan 2008 13 25
Share Matching Plan 2009 20 20
Share Matching Plan 2010 15 4
Share Matching Plan 2011 8 -
Performance Share Plan 2009 5 5
Performance Share Plan 2010 5 1
Performance Share Plan 2011 3 -
Total 69 77
e fair value of the services rendered is based on the share price of the
matching shares that are expected to be allotted. e share price is deter-
mined at the time of the participants’ investment adjusted by the dividend
that does not accrue to the employee during the vesting period.
e expense for the share plans is included in operating income and is
recognised in the balance sheet as equity and accrued expenses (social secu-
rity fees). Administrative expenses for the share matching plans amounted to
  () in .
SENIOR EXECUTIVES’ BENEFITS
Remuneration to Board members
In accordance with the resolution of the Annual General Meeting, the fees
paid to members of the Board amount to  ,, (,,), consisting
of  ,, (,,) to the Chairman,  , (,) to the
Deputy Chairman and  , (,) to each of the other members
elected by the Annual General Meeting, with the exception of the President.
For audit committee work, committee chairman Per-Arne Sandström
also received a fee of  , (,) and committee members Johan
Forssell and Joakim Westh each received a fee of  , (,).
For remuneration committee work, committee chairman Lena Treschow
Torell also received a fee of  , (,) and committee members
Marcus Wallenberg and Sten Jakobsson each received a fee of  ,
(,).
Remuneration to the President
e salary paid to the President and  consists of a xed salary. e previ-
ous short-term variable portion was discontinued as of  in accordance
with the resolution of the Annual General Meeting. e preparation process
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.
Håkan Buskhe has participated since  September  in the Saab Global
Performance Share Plans approved by the ,  and  Annual Gen-
eral Meetings.
Outstanding matching rights in the Saab Global Performance Share Plan 
amount to  , (,) as of  December  at estimated outcomes.
Corresponding gures for the Saab Global Performance Share Plans  and
 are  ,, (,) and ,, respectively, at estimated outcomes.
During the period  January through  December , Håkan Buskhe
received salary and other benets totaling  ,, (,,), of
which other benets, including Performance Share Plans, amounted to
,, (,,).
Pension terms
e retirement age for the President is  years. e President has a dened-
contribution pension plan. He may decide himself on the payment term,
though this must fall within the provisions of Swedish income tax law. e
pension cost for Saab consists of pension premiums amounting to  per cent
of the xed salary until the President turns , aer which the pension pre-
mium will amount to  per cent of the xed salary. Pension premiums are
paid as long as the President remains an employee of the company, but not
beyond the age of . During his rst ve years of employment, the President
also receives an extra pension contribution of  ,, payment of which
is made annually and is conditional on Håkan Buskhe remaining an employee.
To this is added the cost of pension premiums according to the  plan.
e pension commitment is vested.
For , the cost of Håkan Buskhe’s pension, including , was
,, (,,).
Severance terms
If terminated by the company, the President will receive a salary and pension
benets for a period of six months (period of notice). ereaer 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 dur-
ing the same period. If the President resigns voluntarily, there is a six-month
period of notice with salary and pension benets, but no severance pay. e
President’s agreement includes a non-compete clause.
Remuneration to other senior executives
e group of other senior executives included  individuals () in , con-
sisting of the Executive Vice President, heads of the business areas and Heads
of Group Stas. During , the following senior executives le their posi-
tions at the company: General Counsel Anne Gynnerstedt ( January) and
Senior Vice President and Chief Financial Ocer Lars Granlöf ( February).
Senior Vice President and Head of Group Human Resources Mikael Grodz-
insky le the Group Management on  January, the date on which Lena Eli-
asson assumed that post. e following two senior executives took up posts:
General Counsel Annika Bäremo ( February) and Senior Vice President and
Chief Financial Ocer Magnus Örnberg ( November). From  March
through  October, Görgen Johansson served as Acting Senior Vice Presi-
dent and Chief Financial Ocer. At the turn of /, Group Manage-
ment was therefore comprised of  persons, including the .
e salaries paid to other senior executives consist of a xed salary. e
previous short-term variable portion was discontinued as of  in accord-
ance with the resolution of the Annual General Meeting. Compensation issues
regarding the other senior executives are prepared by the Head of Group
Human Resources and presented to the President, who makes a decision
pending the approval of the Compensation Committee and the Board.
Since November , all eligible executives have participated in the Saab
Global Performance Share Plans approved by the Annual General Meetings in
,  and . e Saab Global Performance Share Plan  was con-
cluded in January . Outstanding matching rights in the Saab Global Per-
formance Share Plan  amount to  ,, (,,) as of  Decem-
ber at estimated outcomes, while corresponding gures for the Saab
Global Performance Share Plans  and  amount to  ,,
(,) and ,, respectively, at estimated outcomes.
In , the other senior executives received salaries and other benets
totalling  ,, (,,), of which other benets, including Per-
formance Share Plans, accounted for  ,, (,,).
Pension terms
As of  January , a pension age of  years applies to new executives.
Among other senior executives, two individuals have a pension age of  years.
In addition to ,  members of the group () are aliated with the Saab
plan, which is dened-contribution and vested. e Saab plan provides pen-
sions benets 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 this must fall
within the provisions of Swedish income tax law. Moreover, an insurance pol-
icy 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.
Of the other senior executives, two individuals received cash settlements
of a non-recurring nature upon recruitment. An amount totalling
,, will be paid during a period of  months from the start of
employment. e payments are made monthly in the form of pension premi-
ums and are conditional upon the recipients not giving notice of termination
of employment.  , has been paid during . Pension obligations
NOTE 37 CONT.
FINANCIAL INFORMATION > NOTES
SAAB ANNUAL REPORT 2012 105