Remuneration to the President
and senior executives

Employment terms for President Jan Lidén
Jan Lidén’s employment terms call for a fixed annual salary with no variable compensation in the form of bonuses, etc. His remuneration consists of a fixed yearly salary. His ordinary retirement age is 60. Jan Lidén disposes of an annual premium of SEK 3.5 M for defined contribution pension purposes. The Parent company’s obligation extends only to the size of the premium. The premium is index-linked on a yearly basis at the highest percentage applied by BAO, Sparinstitutens Pensionskassa and Alecta.
If terminated by the Parent company, Jan Lidén will receive a salary during a 12-month term of notice. To this is added severance pay for 12 months. A deduction is made for income earned from new employment. If Jan Lidén resigns, the term of notice is 6 months and there is no severance.

Employment terms for head of Swedish Banking
Kjell Hedman’s variable compensation is maximized at 25 percent of annual salary and consists of 2/3 bonuses tied to payouts by the Kopparmyntet profit participation fund and 1/3 bonuses tied to individual goals. Variable compensation is not pensionable. Kjell Hedman has a defined-benefit pension amounting to 75 percent of 54.57 income based amounts, in addition to which he receives a supplementary defined-contribution pension in which the parent company is committed to pay premiums to a company-owned endowment insurance for the equivalent of 35 percent of salary segments not secured by the defined-benefit entitlement.

If terminated by the parent company, Kjell Hedman will receive a salary during a six-month term of notice. To this is added severance pay for 12 months. A deduction is made for income earned from new employment. If Kjell Hedman resigns, the term of notice is six months and there is no severance.

* Includes compensation paid during the year from all group entities, Swedish or international. The remuneration shown refers to the full year for the members of the group management at the end of the year, excluding the President.

Variable compensation paid to the Swedish Executive Management is maximized at 25 percent of annual salary and consists of 2/3 bonuses tied to payouts by the Kopparmyntet profit participation fund and 1/3 bonuses tied to individual goals. Variable compensation paid to the Baltic Executive Management is maximized at 13 monthly wages. In addition 1 percent of EVA (Economic Value Added) is divided equally between the senior executives, maximized at EUR 360,000 per holder of the position. In 2007, SEK 7,416,000 in variable compensation was paid to other senior executives. SEK 8,515,000 was charged against income. Variable compensation is not pensionable. Directors’ fees are deducted against salary, unless otherwise agreed.

Pension obligations
Other senior executives comprise a total of seven persons at year-end. A defined-benefit pension is payable to four persons from age 60 and to one person from age 62. For four persons, a deduction is made for previously vested pension entitlement. Benefits are accrued continuously until retirement and are vested after they have been accrued. For one person, previously vested benefits are not coordinated, but the period of service is reduced and the pension entitlement is fully vested at the age of 59. For two executives, there is no pension commitment.

For four of the five individuals with a defined-benefit pension entitlement, the pensionable salary for 2004 in the defined-benefit pension plan has been locked in terms of income base amounts, in addition to which they receive a supplementary defined-contribution pension where the parent company has committed to premium to a company-owned endowment insurance for the equivalent of 35 percent of salary segments not secured by the defined-benefit entitlement.

Termination conditions
If terminated by the company, salary is payable during the term of notice of 0–12 months. To this is added severance pay for 6–12 months. A deduction is made for any income earned from new employment. If a senior executive resigns, the term of notice is not more than six months and there is no severance.