Guidelines for remuneration to senior executives
The Annual General Meeting of 4 May 2011 approved the following guidelines concerning remuneration to senior executives. Senior executives are the CEO and other members of the senior management team.
Billerud shall set the remuneration levels and employment terms that are appropriate in order to recruit and keep a management team with a high level of competence and the capability to achieve established goals. Remuneration shall motivate executives to do their utmost to secure shareholders’ interests. Remuneration may be in the form of fixed salary, variable salary, long-term incentive programs and other benefits such as pension or company car. Fixed and variable salary shall be set in relation to competence, area of responsibility and performance. Variable remuneration shall be drawn up with a purpose to promoting the company's long-term value creation and will be based on outcomes in relation to established targets and shall be a maximum of a fixed percentage of annual fixed salary and vary between 30% and 45%. However, variable remuneration shall only be paid on condition that the company's result is positive.
Long-term incentive programs within the company shall primarily be linked to financial requirements of performance and shall ensure long-term commitment to the development of the company and shall be implemented on market terms. Long-term incentive programs shall run for at least three years. For more information about the existing incentive programs, see the annual report and “Long-term incentive program” on the website.
Pension benefits shall either be defined-benefit or defined-contribution, and normally give an entitlement to pension from age 65. In some cases the retirement age may be lower, although 62 is the lowest retirement age. Six to twelve months is the normal notification period for termination of employment, and severance pay shall be a maximum of 12 months’ salary in the event of dismissal by the company.
Remuneration and employment terms for the CEO are prepared by the Compensation Committee and decided by the Board. Remuneration and employment terms for members of the senior management team are decided by the CEO, after approval from the Compensation Committee.
The Board of Billerud has the right to deviate from these guidelines in individual cases if there is a good reason.
Remuneration to the Board and senior executives 2010
Remuneration to the Board and senior executives 2010 (note 24 in the Annual Report 2010), pdf