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The purpose of the Remuneration Committee is to evaluate the Group's overall payroll structure, fixed and variable remuneration components, and other benefits to senior management and executives reporting directly to the President and CEO. Its duties also include the evaluation of the connection between performance and compensation, issues involving bonus and incentive programs, pensions, severance payments, etc. The Committee also assists the Board in drafting proposals for guidelines for remuneration for senior management that the Board presents to the Annual General Meeting. The Group strictly applies the grandfather principle.
Since the Annual General Meeting 2007 the Remuneration Committee has consisted of Lars Lundquist (Chairman) and Lars Förberg. Lars Förberg is not independent in relation to the principal shareholders. The Company's Human Resources Director and, when necessary, the President, attend the committee's meetings. In 2007 the committee met eleven times (three times the previous year) and discussed issues such as the framework of the year's salary revision for senior executives, the principles for variable compensation (i.e., levels, targets and outcomes), pensions and other issues mentioned above within the framework of the committee's competence and duties.
During the year the Committee especially focused on the Group's current employee stock option program and on issues involving the structure of a new, long-term incentive program for the Group's senior executives. A proposal will be presented to the Board of Directors in the spring 2008, which will then present it to the Annual General Meeting for resolution. All members were present at all meetings. The Remuneration Committee reports to the Board, which makes the final decisions.
Since the Annual General Meeting 2007 the Remuneration Committee has consisted of Lars Lundquist (Chairman) and Lars Förberg. Lars Förberg is not independent in relation to the principal shareholders. The Company's Human Resources Director and, when necessary, the President, attend the committee's meetings. In 2007 the committee met eleven times (three times the previous year) and discussed issues such as the framework of the year's salary revision for senior executives, the principles for variable compensation (i.e., levels, targets and outcomes), pensions and other issues mentioned above within the framework of the committee's competence and duties.
During the year the Committee especially focused on the Group's current employee stock option program and on issues involving the structure of a new, long-term incentive program for the Group's senior executives. A proposal will be presented to the Board of Directors in the spring 2008, which will then present it to the Annual General Meeting for resolution. All members were present at all meetings. The Remuneration Committee reports to the Board, which makes the final decisions.