Saab 2015 Annual Report Download - page 83

FINANCIAL INFORMATION – FINANCIAL STATEMENTS
Remuneration to the President
The remuneration to the President and CEO consists of a fixed salary. No short-
term variable remuneration is paid. The 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 1 September 2010 in the Performance
Share Plans approved by each Annual General Meeting from 2009 to 2014 and in
the Share Matching Plans for 2011–2014.
Outstanding matching rights in the Performance Share Plan and Share Matching
Plan 2011 amounted to SEK71,047 (331,897) as of 31 December 2015 at estis-
mated outcomes and in the Performance Share Plan and the Share Matching Plan
2012 to SEK347,112 (196,889) at estimated outcomes. Corresponding figures for
the Performance Share Plans and the Share Matching Plans 2013 are
SEK1,477,871 (362,585) at estimated outcomes, and for Saab’s Performance
Share Plans and the Share Matching Plans 2014 to SEK 345,360 at estimated
outcomes.
During the period 1 January through 31 December 2015, Håkan Buskhe recei-
ved salary and other benefits totalling SEK13,673,590 (12,003,325), of which
other benefits, including share related plans, amounted to SEK1,792,923
(1,407,998).
Pension terms
The retirement age for the President is 62 years. The President has a defined-
contribution pension plan. He may decide himself on the payment term, though
this must fall within the provisions of Swedish income tax law. The pension cost for
Saab consists of pension premiums amounting to 35 per cent of the fixed salary.
Pension premiums are paid as long as the President remains an employee of the
company, but not beyond the age of 62.
To this is added the cost of pension premiums according to the ITP plan.
The pension commitment is vested.
For 2015, the cost of Håkan Buskhe’s pension, including ITP, was
SEK4,280,797 (4,222,203).
Severance terms
If terminated by the company, the President will receive a salary and pension bene-
fits for a period of six months (period of notice). Thereafter he will receive severance
pay equivalent to one year of salary, based on his current fixed salary. If the Presi-
dent does not obtain new employment, he will receive an additional six months of
severance pay. The salary during the period of notice and severance will be deduc-
ted 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 benefits, but no severance pay. The President’s agreement includes a
non-compete clause.
Remuneration to other senior executives
The group of other senior executives included 11 (9) individuals at 31 December
2015; specifically, Executive Vice Presidents, Heads of the Business Areas and
Heads of Group staffs. At 31 December 2015 Group Management was comprised
of Håkan Buskhe (President), Lennart Sindahl, Magnus Örnberg, Görgen Johansson,
Micael Johansson, Jonas Hjelm, Ann-Kristin Adolfsson, Ulf Nilsson, Annika
Bäremo, Dan Jangblad, Åsa Thegström, and Lena Eliasson.
The remuneration paid to other senior executives consists of a fixed salary. No
short-term variable remuneration is paid. Compensation issues regarding the other
senior executives are prepared by the Head of Group Human Resources and pre-
sented to the President, who makes a decision pending the approval of the Com-
pensation Committee and the Board.
Of the other senior executives, two individuals received cash settlements of a
non-recurring nature upon recruitment according to a resolution 2012. An amount
totalling SEK 1,990,000 will be paid during a period of 36 months from the start of
employment. The payments are made monthly in the form of pension premiums
and are conditional upon the recipients not giving notice of termination of employ-
ment. SEK 305,280 has been paid during 2015 and thereby the total amount of
SEK 1,990,000 has been paid.
Since November 2008, all eligible executives have participated in the Perfor-
mance Share Plans approved by each Annual General Meeting from 2009 to 2014
and in the Share Matching Plans for 2011-2014. The Performance Share Plan
2011 was concluded in January 2016. Outstanding matching rights in the Perfor-
mance Share Plan and the Share Matching Plan 2011 amount to SEK148,159
(637,833) as of 31 December 2015 at estimated outcomes. Corresponding figures
for the Performance Share Plans and the Share Matching Plans 2012 and 2013
amount to SEK714,479 (476,532) and SEK2,245,682 (624,927), respectively, at
estimated outcomes and for Saab’s Performance Share Plansand the Share Mat-
ching Plan 2014 to SEK 670,135 at estimated outcomes.
In 2015, the other senior executives received salaries and other benefits totalling
SEK49,480,374 (34,550,213), of which other benefits, including share related
plans, amounted to SEK5,912,308 (3,616,076).
Pension terms
As of 1 January 2005, the pension age 62 years is applied to all other senior execu-
tives. However, one person has the pension age 60 years and two persons have a
pension age according to existing law and collective agreement.
In addition to ITP, 9 members of the group (9) are affiliated with the Saab plan,
which is defined-contribution and vested. The Saab plan provides pension benefits
in addition to ITP or its equivalent on salary levels between 20 and 30 basic
amounts as well as on salary segments over 30 basic amounts. The individuals
themselves can decide on the payment term, though this must fall within the provi-
sions of Swedish income tax law. Moreover, an insurance policy finances the
period between the ages of 60 or 62 years and 65 years.
The pension cost for Saab consists of pension premiums, which are based on a
percentage of qualifying salaries. The percentage rate is determined by each
executive’s time remaining until the pension age, 60 or 62 years, when joining the
plan. The aggregate insurance balance should cover a targeted pension from
65years of approximately 32.5 per cent of salary levels between 20 and 30 basic
amounts and approximately 50 per cent of segments over 30 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 2015, pension costs for other senior executi-
ves, including ITP and its equivalent, amounted to SEK14,325,571 (12,063,664).
Other senior executives are entitled, or obliged if the company so requests, to retire
on pension as of the age of 60 or 62 years.
Severance terms and severance pay
If terminated by the company, the group of other senior executives normally recei-
ves a salary and pension benefits for six months (period of notice). Thereafter 9
senior executives receive severance pay, according to agreement, equivalent to a
maximum of 18 months of salary, based on their fixed salary. Severance is paid
monthly with the first payment in the month after employment has ended. Seve-
rance is not paid for the period falling after the contractual pension age. Employees
hired before 1 January 2005 who have reached the age of 55 are entitled to an
additional six months of severance. Together, the term of notice and severance
may not exceed 24 months.
The 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 benefits,
but no severance pay.
Other benefits
All senior executives have a company car and medical insurance. Several senior
executives also have benefits in the form of overnight housing and travel.
Note 10, cont.
SAAB ANNUAL REPORT 2015– 79