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 May 25, 2021, it was decided that a fee of SEK 500,000 will be paid to the Chairman of the Board and SEK 200,000 to other members elected by the Annual General Meeting, calculated on the assignment running the entire period until the 2022 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 80,000 to the Chairman of the Board’s Audit Committee and in the amount of SEK 40,000 to other members of the Audit Committee. For committee work in the Remuneration Committee, SEK 40,000 shall be paid to the Chairman and SEK 25,000 to other members of the Remuneration Committee.
Renumeration to the Senior Management
According to the Swedish Companies Act, a shareholders’ meeting must adopt guidelines for remuneration paid to the CEO and other senior management. Guidelines for remuneration paid to senior management were adopted by the annual general meeting held on May 25, 2021.
The senior management, which consists of nine people, and the CEO are regarded as senior executives. The guidelines’ purpose is to ensure that Balco can attract, motivate and retain senior executives. The aim of the remuneration is to be competitive in comparison with prevailing market standards and at the same time in accordance with the shareholders’ interests. The remuneration to senior executives shall consist of fixed and variable remuneration, the opportunity to participate in a long-term incentive program as well as pension contributions. These components shall together create a well-balanced remuneration, which reflects individual competence, responsibility and performance, both short-term and long-term, as well as the Company’s total performance.
Fixed and variable salary
The fixed remuneration shall be competitive in comparison with prevailing market standards and shall be based on the individual senior executive’s competence, responsibility and performance.
Senior executives shall be able, in addition to fixed remuneration, to receive variable remuneration. Such variable remuneration may not exceed 50 per cent of the fixed remuneration. The variable remuneration shall be based on predefined and documented financial and individual targets.
Other benefits and pension
The Group offers other benefits to the senior executives in accordance with local practice. Such other benefits can for example consist of a company car and health services. When applicable, accommodation is offered during a limited time. The senior executives shall be offered pension contributions in line with market terms in the country where they are employed. Pension obligations are secured through payments of premiums to insurance companies.
Deviations from the guidelines
In special circumstances, the Board of Directors may deviate from the above guidelines, for example in relation to additional variable remuneration after exceptional achievements. In such a case, the Board of Directors is obligated to give account for the reason for the deviation at the following Annual General Meeting.
Notice of termination and severance compensation
For the CEO a notice period of twelve months applies in case of termination by the Company and six months in the case of termination by the CEO. The CEO is bound by a non-competition clause, which is valid for two years from the termination of employment.