According to the Swedish Companies Act the annual general meeting each year, based on proposals from the Board, shall decide on guidelines for remuneration to senior executives.
These guidelines shall include the president and other persons in the company’s management. The company’s auditors shall not later than three weeks prior to the annual general meeting submit a written statement that the guidelines that applied since the previous annual general meeting have been complied with.
Auditor's statement 2012 (pdf)
The Annual General Meeting 2013 adopted the following policy for remuneration and other terms of employment for the senior management:
Remuneration to the CEO and other senior managers will be a fixed amount, possible variable remuneration, additional benefits and pension. Other senior managers include the executive vice president, business group managers and the like as well as the central staff managers. The total remuneration is to correspond to market practice and be competitive on the senior manager's field of profession. Fixed and variable remuneration is to be linked to the manager's responsibility and authority. For the CEO, as well as for other senior managers, the variable remuneration is to be limited and linked to the fixed remuneration.
The variable remuneration is to be based on the outcome of predetermined objectives and, as far as possible, be linked to the increase of value of the SCA share, from which the shareholders benefit. Variable remuneration shall be designed in such a way that the board of directors, if exceptional economic conditions exist, have the possibility to limit or omit payment of the variable remuneration if such a measure is considered to be reasonable and consistent with the company’s responsibility towards its shareholders, employees and other interested parties.
Remuneration to the CEO and other senior managers will be a fixed amount (base salary), possible variable remuneration, additional benefits and pension.
In the event of termination of employment, the notice period should normally be two years should the termination be initiated by the company, and one year, when initiated by the senior manager. Severance pay should not exist.
Pension benefits are to be determined either by benefit or charge, or by a combination hereof, and entitle the senior manager to pension from the age of 60, at the earliest. To earn the pension benefits, the period of employment must be long, at present 20 years. When resigning before the age entitling to pension, the senior manager will receive a paid-up pension policy from the age of 60. The pension is not to be based on variable remuneration. Matters of remuneration to the senior management are to be dealt with by a remuneration committee and, as regards the president, be resolved by the board of directors.