Remuneration to the board
Fees and other remuneration to the Board members, including the Chairman, are determined by the Annual General Meeting. At the Annual General Meeting on 14 May 2024, it was decided that a fee of SEK 550,000 will be paid to the Chairman of the Board and SEK 220,000 to other members elected by the Annual General Meeting, calculated on the assignment running the entire period until the 2024 Annual General Meeting.
The AGM further resolved that remuneration for committee work for the period until the end of the next Annual General Meeting shall be paid in the amount of SEK 110,000 to the Chairman of the Board’s Audit Committee and in the amount of SEK 55,000 to other members of the Audit Committee. For committee work in the Remuneration Committee, SEK 65,000 shall be paid to the Chairman and SEK 35,000 to other members of the Remuneration Committee.
Renumeration to the Senior Management
Guidelines
According to the Swedish Companies Act, a shareholders’ meeting must adopt guidelines for remuneration paid to the CEO and other senior management.
Senior management refers to the CEO and the Executive Committee, which consists of four people. The purpose of the guidelines is to ensure that Balco can attract, motivate and retain senior executives. The objective of the company's remuneration is to be competitive and at the same time in line with shareholders' interests. Remuneration of management consists of fixed and variable salary, the possibility to participate in a long-term incentive scheme and pension benefits. The company's remuneration schemes combine to create well-balanced remuneration that reflects individual skills, responsibilities and performance, in the short and long term, as well as the company's overall performance.
Fixed and variable salary
Fixed annual salary for an executive shall be competitive and based on the skills, responsibilities and performance of the person.
In addition to the fixed annual salary, executives shall be entitled to variable remuneration. Such variable remuneration shall not exceed 50% of the fixed annual salary. Variable remuneration shall be based on the achievement of predetermined and documented financial and individual targets.
Other benefits and pension
The Group provides other benefits to senior management in accordance with local practice. Such benefits may include, for example, a company car and occupational health care. For a limited period, official accommodation may also be offered where appropriate. Senior management shall be entitled to pension benefits based on the practice in the country where they are employed. Pension commitments are secured through premium payments to insurance companies.
Deviations from the guidelines
If there are special reasons justifying it, the Board of Directors may deviate from the above guidelines, such as additional variable remuneration for exceptional performance. In such a case, the Board of Directors shall explain the reason for the deviation at the next Annual General Meeting.
Notice of termination and severance compensation
The CEO is entitled to twelve months notice in case of termination by Balco and notice of six months in case of resignation by the CEO. The CEO is bound by a non-competition clause which applies for two years from the end of his/her employment. For other senior executives, a mutual notice period of three to twelve months applies.