Remuneration of the Board of Directors and senior executives
A description of the company’s system of variable remuneration to the Board and Executive Management, and of each outstanding share and share-pricerelated incentive scheme can be found in note G4 in the Annual Report.
Guidelines for executive remuneration
For more information on executive remuneration, see Guidelines for the Remuneration of Senior Executives, adopted by the Annual General Meeting 2020:
Short-Term Incentive (STI) 2021 for Senior Executives
Variable cash remuneration to senior executives is conditional upon the fulfillment of defined and measurable criteria. At the beginning of each year the Board of Directors and the Remuneration Committee establish the criteria, including key performance indicators (KPIs) and the target ranges, deemed relevant for the upcoming performance period.
For the Short-Term Incentive (STI) 2021, it has been decided that the President and Group Function heads shall be measured on Group level KPIs and the Business Area Presidents shall be measured on both Group level and a combination of Business Area level KPIs (the KPIs vary slightly between the Business Areas). The KPIs that form the basis for STI 2021 are the following:
- Adjusted Earnings Per Share (Adjusted EPS)
- Earnings Before Interest and Taxes (EBIT)
- Cash Conversion Rate (CCR)
- Productivity Improvement (PI)
- Adjusted Earnings Before Interest and Taxes (EBIT/A)
The extent to which the criteria for awarding STI have been fulfilled shall be determined after the expiry of 2021.