Saab 2015 Annual Report Download - page 62

ADMINISTRATION REPORT
OTHER INFORMATION
within their respective areas of expertise, separately
from their Board duties and for a limited period of
time. Compensation for these services shall be paid
at market terms.
INFORMATION IN THE ANNUAL REPORT NOTE 10
Note 10 of the Annual Report includes a description
of current remuneration for senior executives,
including xed and variable compensation, long-
term incentive programmes and other benets.
INCENTIVE PROGRAMMES PROPOSED TO THE
ANNUAL GENERAL MEETING 2015
e Board of Directors proposed that the Annual
General Meeting 2015 resolve to adopt a long-term
incentive programme 2015 consisting of a Share
Matching Plan and Performance Share Plan. e
Annual General Meeting resolved in accordance
with the Board’s proposal.
BOARD OF DIRECTORS PROPOSAL FOR
GUIDELINES FOR REMUNERATION AND OTHER
TERMS OF EMPLOYMENT FOR SENIOR
EXECUTIVES, APPLICABLE AS OF THE ANNUAL
GENERAL MEETING 2016
e Remuneration Committee has evaluated the
remuneration for Saab AB senior executives, in clud-
ing variable remuneration, the application of the
remuneration guidelines and other employment
terms for senior executives resolved at the Annual
General Meeting 2015, and the current remunera-
tion structures and remuneration levels in the
company.
e Remuneration Committee has recom-
mended that the Board of Directors propose that
the Annual General Meeting adopt remuneration
guidelines with terms and conditions in principle
identical to those that were adopted by the Annual
General Meeting 2015. In light of the above, the
Board of Directors proposes that the Annual
General Meeting 2016 adopt guidelines for remu-
neration and other terms of employment for senior
executives with terms and conditions in principal
identical to those resolved at the Annual General
Meeting 2015.
With respect to xed and variable remuneration,
other benets and consulting fees to Board mem-
bers, the guidelines are unchanged compared to
2015. Certain clarications have been proposed in
the guidelines on pension and miscellaneous terms
as described below.
Pension
e minimum retirement age is 62 under pension
agreements entered into aer 1 January 2005. In
addition to the ITP agreement, the pension is part of
a dened premium plan and provisions are made
annually. For the President the provision is limited
to 35 per cent of xed salary. For other senior execu-
tives the percentage is based on “Saab Plan” regula-
tion. According to this plan, the percentage is
dependent on the number of years remaining until
retirement age upon joining the plan. e aggregate
insurance balance should cover a targeted pension
from age 65 of approximately 32.5 per cent of salary
levels between 20 and 30 basic income amounts and
approximately 50 per cent of segments above 30
basic income amounts.
All senior executives may also be entitled to
enhanced disability pension and survivors’ pension.
Miscellaneous terms
All Group Management executives, including the
President, may terminate their employment with
six months’ notice. If employment is terminated by
Saab the notice period is also six months, aer
which severance equal to one year’s salary is paid.
An additional year’s salary may be paid in the event
no new employment has been obtained during the
rst 18 months from the time notice of termination
was served.
With respect to employment agreements made
aer 1 January 2005, and in cases where Saab termi-
nates the employment, a maximum severance pay of
18 months can be payable in addition to the normal
six-month notice period. e notice period and
severance pay in total shall not exceed 24 months.
In both cases, any income from termination pay
and severance pay will be deducted against income
from other employment during the corresponding
time.
Deviations from guidelines for remuneration to
senior executives resolved by Annual General
Meeting 2015.
e Board has decided to deviate from the guide-
lines during 2015.
In connection with the adjustments in Saab's
Business Area structure a settlement was made with
a senior executive. As a part of the settlement it was
agreed that any income that the senior executive
may have from other employment during the period
for termination- and severance payment from Saab,
shall not reduce the payments from Saab during the
corresponding time.
INCENTIVE PROGRAMMES PROPOSED TO THE
ANNUAL GENERAL MEETING 2016
e Board of Directors propose that the Annual
General Meeting resolve to adopt a long-term incen-
tive programme 2016 consisting of two parts: Share
Matching Plan 2016 and Performance Share Plan
2016. e terms and estimated costs for Share
Matching Plan 2016 and Performance Share Plan
2016 are presented in the Board of Director’s
complete proposal to the Annual General Meeting.
SAAB’S LONG-TERM INCENTIVE PROGRAMMES
AND AUTHORISATION TO REPURCHASE SHARES
e Annual General Meeting of Saab has resolved
for a number of years to oer a long-term incentive
programme consisting of two parts: a Share Matching
58 – SAAB ANNUAL REPORT 2015