PostNord’s owners adopted Guidelines for Executive Compensation at the Annual General Meeting held on 15 April 2011.
Main provisions of the Guidelines: (link to complete Guidelines, Swedish)
1. The Guidelines are based on the government’s ”Guidelines for Employment Terms for Executives in State-owned Companies” dated 20 April 2009.
2. Total compensation for executives shall be well-balanced, competitive, reasonable, appropriate, subject to a salary ceiling, and shall promote good ethics and a positive corporate culture. Executive compensation shall not be a benchmark for comparable enterprises but shall be characterised by moderation. It shall also serve as guidance for total compensation for other emloyees, which shall be reported to the board by the CEO on an annual basis.
3. For PostNord executives employed in accordance with Swedish labour law, Posten’s pension plan (ITP-P) is presently applied as regards defined benefit pensions, which are based on the individual’s final wage and length of employment. Employees reaching full retirement age receive a pension of 10% of their pension-based compensation for wage components up to 7.5 income base amounts, 65% of wage components between 7.5 and 20 income amounts and 32.5% of wage components between 20 and 30 income based amounts. ITP-P pensions are, as a rule, supplemented with individual premium-based agreements. The fee shall be in proportion to base salary and should not exceed 30 per cent of fixed salary. A transition to full premium-based pensions shall be applied to new employees. The retirement age is currently 62 but shall be raised to 65 in future recruitments. For executives employed in accordance with Danish labour law, full premium-based pensions are applied and the retirement age is determined pursuant to Danish law.
4. When PostNord terminates its employment contract with an executive, the notice period should not exceed twelve months. When an executive terminates his or her employment contract with PostNord, the notice period should not exceed six months. The 12-month notice period in cases of employer termination binds the executive to a duty of loyalty, including a duty not to compete and other obligations arising from his or her employment, for a longer period of time than would have been the case if the notice period were only six months as per the government’s guidelines. Upon employer termination, severance pay equal to a maximum of 12 months’ salary, not including the notice period, may be issued. Income earned from subsequent employment or income from other activities shall be deducted from salary paid during the notice period and/or from the aforementioned severance pay.
5. Variable salaries shall not be paid to executives.
Board of Directors and Committee remuneration
Remuneration to board members: SEK 250,000
Remuneration to Chairman of the Board: SEK 600,000
Remuneration to Auditing Committee members: SEK 50,000 Remuneration to Chairman of Auditing Committee: SEK 62,500
Remuneration to Compensation Committee members: SEK 25,000
Remuneratin to Chairman of Compensation Committee: SEK 37,500
Remuneration for work performed on the Auditing and Compensation Committees is paid in full during the following year.