Employment terms for the President Michael Wolf took over as President on 1 March 2009. His compensation consists of an annual base salary of SEK 8m with no variable compensation in the form of bonuses, etc. His ordinary retirement age is 60 and he receives an annual premium of SEK 3.2m for defined-contribution pension purposes. If terminated by the Parent Company, Michael Wolf 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 Michael Wolf resigns, the term of notice is six months and there is no severance.
Remuneration to the President
|Remuneration to the President and CEO, Michael Wolf, SEK thousands||2009|
|Fixed compensation, salary||8,000|
|Variable compensation, bonuses||-|
|Pension cost incl. payroll tax||3,200|
|Remuneration to other senior executives*, SEK thousands||2009||2008||2007||2006||2005|
|Fixed compensation, salaries||28||19||18||17||15|
|Variable compensation, bonuses||0||9||7||8||8|
|Pension cost incl. payroll tax||13||9||10||9||14|
|No. of persons
* Includes compensation paid during the year by all Group companies, Swedish as well as foreign. The reported amounts refer to compensation for the time these individuals were members of Group Executive Committee, excluding the President. In 2009 Kjell Hedman, Erkki Raasuke and Annika Wijkström were members of Group Executive Committee for the entire year. Giedrius Dusevicius, Catrin Fransson, Magnus Gagner Geeber, Mikael Inglander, Cecilia Hernqvist, Marie Hallander Larsson, Göran Bronner, Håkan Berg and Thomas Backteman were members of Group Executive Committee for parts of the year.
On 31 December 2009 Group Executive Committee was comprised of Kjell Hedman, Cecilia Hernqvist, Marie Hallander Larsson, Erkki Raasuke, Annika Wijkström, Göran Bronner, Håkan Berg and Thomas Backteman.
The other senior executives in 2008 were Kjell Hedman, Catrin Fransson, Giedrius Dusevicius, Mikael Inglander, Erkki Raasuke, Annika Wijkström and Magnus Gagner Geeber.
Compensation for Magnus Gagner Geeber applies as of 1 July 2008, while compensation for Anders Ek applies to the period 1 January to 30 June 2008.
Variable compensation for other senior executives of SEK -955 000 (5 084) was charged against income.
Among the other eight senior executives as of year-end, three are entitled to a lifetime defined-benefit pension from age 60, three others are entitled to a lifetime defined-benefit pension from age 62 and two has a retirement age of 65. For six persons, a deduction is made for previously vested pension entitlements. Benefits are accrued continuously until retirement and are vested after they have been accrued. For one senior executive, bank pays a predetermined premium of SEK 945 000 per year for an insurance policy. For one senior executive, there is no pension commitment.For three of the six 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 pay the premiums for a company-owned endowment insurance for the equivalent of 35 per cent of salary segments not secured by the defined-benefit entitlement.Three of the six individuals with a defined-benefit pension entitlement receive a supplementary defined-contribution pension where the Parent Company has committed to pay the premiums for company-owned endowment insurance for the equivalent of 35 per cent of salary segments between 30 and 80 income base amounts.
If terminated by the company, salary is payable during the term of notice of 6-12 months. In addition to severance pay for 12 months. A deduction is made for any income earned from new employment. For two senior executives, the severance is pensionable. If a senior executive resigns, the term of notice is not more than 12 months and severance cannot be paid unless they are terminated due to a serious breach of contract on the part of the bank.
Limits due to agreement with National Debt Office
According to its agreement with the National Debt Office, Swedbank AB has pledged, among other things, to ensure that the following applies to the five highest paid senior executives:
- The base salary or other fixed compensation paid to any executive may not exceed the compensation level determined prior to 20 October 2008.
- Variable compensation, including options, may not be determined during the time period during which the bank’s contract with the National Debt Office applies (“the contractual period’’), and circumstances related to the contractual period may not be considered when variable compensation is calculated due to previous contracts and no variable compensation determined before the contractual period may be executed or paid during the contractual period.
- With regard to severance, the terms may not be more favourable than stipulated in the employment terms for senior executives of state-owned companies.