Remuneration to senior management
The 2014 AGM established guidelines for remuneration to senior executives, primarily entailing the following: Remuneration and other employment terms and conditions for senior executives is to be market-based and competitive in every market where Getinge is active so as to attract, motivate and retain
skilled and competent employees. The total remuneration package to senior executives is to comprise basic pay, variable remuneration, pension and other benefits. The allocation between basic pay and variable remuneration
should be proportionate to the executive’s responsibility and authority. Variable remuneration is limited to a maximum amount and linked to predetermined and measurable criteria, designed with the aim of promoting
the company’s long-term value creation. No variable remuneration will be paid if earnings before tax are negative. For the CEO, variable remuneration is limited to a maximum of 80% of basic pay. Variable remuneration is based
on the individual targets set by the Board. Examples of such targets include earnings, volume growth, working capital and cash flow. For other senior executives, variable remuneration is based on the outcome in the executive’s personal area of responsibility and individually established targets. In addition
to the aforementioned variable remuneration, adopted share or share-related incentive programs may be included. The Board is entitled to deviate from these guidelines if warranted in individual cases.
Remuneration to senior management 2014
|Basic pay||Variable remuneration||Other benefits||Pension expenses||Total|
|CEO||21 144||-||107||19 843||41 094|
|Other senior executives*||18 195||1 159||878||9 025||28 098|
Comments on the table
Variable remuneration for the financial year of 2014 pertains to written-off bonuses paid during 2015. Other benefits pertain to company cars, accomodation benefits etc.
For other senior executives, bonuses for 2014 were based on a combination of results for the individual’s area of responsibility and individual goals.
Drafting and decision-making process
During the year, the Remuneration Committee gave the Board its recommendations concerning policies for the remuneration to senior executives. The recommendations included the proportion between fixed and variable remuneration and the size of possible pay increases. The Remuneration Committee also proposed criteria for determining bonuses, allotment and the size of the pension conditions and redundancy payment. The Board discussed the Remuneration Committee’s proposals and decided in line with the Remuneration Committee’s recommendations.
Remuneration to the CEO for the 2014 fiscal year was decided by the Board taking into account the Remuneration Committee’s recommendations.
Remuneration to other senior executives was decided by the CEO in consultation with the Chairman of the Board. During 2014, the Remuneration Committee was convened on two occasions. The committee’s work was conducted with the support of external experts in issues concerning remuneration levels and structures.