Remuneration to the Board of Directors

Information on remuneration to senior executives

The Compensation Committee of the Borad prepares decisions prior to Board meetings on salaries and other benefits for the officials, as reported in the enclosed guidelines.

Principles of compensation and other employment terms for senior executives (pdf)

Senior management group Directors’ fees and remuneration, SEK thousands	2007	2006	2005
1. of which, to Chair Carl-Eric Stålberg	1,550	1,550	1,500
of which, in his capacity as Chair	1,300	1,300	1,300
of which, for committee work	250	250	200
2. of which, to First Deputy Chair Ulrika Francke	1,025	900	850
of which, in her capacity as First Deputy Chair	650	650	650
of which, for committee work	375	250	200
3. of which, to Second Deputy Chair	-	-	850
of which, in his capacity as Second Deputy Chair	-	-	650
of which, for committee work	-	-	200
4. of which, to other Directors	2,825	2725	2,125
of which, in their capacity as Directors	2,100	1,950	1,625
of which, for committee work	725	775	500
5. of which, unutilized at the end of the year for duties aside from customary Board work	-	75	475
Annual Directors’ remuneration approved by the AGM according to points 1-5 below	5,400	5,250	5,800

Directors’ fees are not paid to other persons with employment agreements with the Group.

Compensation to the Board Chair, SEK thousands	2007	2006
Fixed compensation, salary	2,975	2,875
Within framework of Board fees set by the Board	1,550	1,550
Other compensation/benefits 60 74	60	74
Total	4,585	4,499
of which pension-based compensation	2,975	2,875
Pension cost, including payroll tax	3,116	2,904

Pension obligations for the Chair of the Board
As an employee from 1 January 2003, Carl Eric Stålberg is entitled to a defined-benefit pension from the age of 60. His pension entitlement is the vested portion of 75 percent of his salary. The vested portion is based on his length of employment in months divided by 360. The parent company also pays a pension premium of SEK 360,000 per year. Previously vested pension benefits remain unaffected. Benefits are accrued continuously until retirement and are vested after they have been accrued.

Termination conditions for the Chair of the Board
Depending on the reason for his termination, Carl Eric Stålberg, in accordance with his employment contract with the parent company, may be entitled to pensionable compensation equivalent to his previous salary for a period after termination. That period amounts to 24 months. Under special circumstances, the period may be extended to 36 months. However, under no circumstances will severance be paid after Carl Eric Stålberg reaches the age of 60, in January 2011. The right to compensation in accordance with what is stated herein is conditional on, among other things, the settlement of 50 percent of any income from new employment, etc. against the severance, unless the Board decides otherwise.

Pension obligations to other Directors
The group has no pension obligations for other Directors.