Variable Salary and Incentive Programs
Presentation of Intrum Justitia's variable salary to company management and share-based incentive programs in accordance with 10.3 of the Swedish Code of Corporate Governance.
Variable Salary to Company Management
The total remuneration may be based upon four main components; base salary, short- and long-term variable salary programmes and pension. In addition hereto, other benefits of limited value, such as a company car, may be offered.
The variable remunerations shall be capped. The short- and long-term variable remunerations shall further be balanced so that the maximum short-term part does not exceed half the total maximum outcome of one year’s all variable salary programmes. There are deviations from this in a few older employment agreements.
Short-term variable salary is set for one year at a time and shall be subject to the achievement of predetermined and measurable goals. Such goals may be general or individual as well as qualitative or quantitative. All goals shall be agreed in writing. Profitability based objectives and discretionary based objectives related to the ongoing strategy transformation are examples of objectives used.
The one-year variable part of the salary contributes to decrease the share of fixed costs and to focus the efforts on fields of activity that the board wants to prioritise.
Short-term variable salary shall not exceed 50 percent of the fixed annual salary. There are deviations from this in a few older employment agreements.
The aim of Intrum Justitia’s long-term variable salary programmes is to stimulate the participants - whose efforts are deemed to have a direct impact on the group’s result, profitability and value growth - to further increased efforts, by aligning their long-term interests and perspectives with those of the shareholders. The aim of the programmes is further to create a long-term commitment to Intrum Justitia, to strengthen the overall perspective of Intrum Justitia and to offer the participants an opportunity to take part of Intrum Justitia’s long-term success and value creation. Another target is to decrease the share of fixed costs.
Long-term variable salary programmes shall be performance-based. The estimated maximum annual value at the time of implementation of the programmes shall be limited to a certain part of the participant’s current fixed annual salary, 150 percent for the CEO and 50 percent for other members of the group management.