The Board of Directors’ of Sandvik AB report of the Remuneration Committee’s evaluation of remunerations to senior executives
The Board of Directors of Sandvik AB has established a Remuneration Committee which, since the Annual General Meeting 2011, consists of Anders Nyrén, Chairman of the Board as well as the Remuneration Committee, Lars Westerberg and Egil Myklebust. The Remuneration Committee's tasks include monitoring and evaluating programs for variable remuneration for senior executives, the application of Sandvik's principles for the remuneration of senior executives, and current remuneration structures and remuneration levels in the company. The Board of Directors hereby presents the following report of the results of the Remuneration Committee's evaluation, in accordance with rule 10.3 of the Swedish Corporate Governance Code.
The Remuneration Committee believes that the company's principles for the remuneration of senior executives adopted by the Annual General Meeting 2011 have fulfilled their purposes and worked well. Moreover, the Committee considers the company's remuneration structures and remuneration levels to be balanced and on market terms.
In order to further strengthen the relationship between the interests of the executive management and the shareholders the Annual General Meeting 2011 resolved to adopt a share-related long-term incentive program for senior executives and key employees.
The Committee has monitored and evaluated this share-related long-term incentive program for senior executives and key employees. According to the Committee, the program is appropriate in order to be able to retain and motivate key employees in the group, and well-balanced. The Committee has noted that the program was well received and that all participants which had investment requirements purchased Sandvik shares in order to participate in the program.
Stockholm, January 2012
Sandvik Aktiebolag (publ)
The Board of Directors