Compensation

To successfully implement the company’s business strategy and safeguard its long-term interests and sustainability, the company must recruit and retain qualified personnel. Compensation to the CEO and other senior executives must therefore be perceived as fair, competitive, and motivational. The board of directors is empowered to depart from the below guidelines if in a specific case there is a special cause for the deviation and a deviation is necessary to serve the company’s long-term interests, sustainability, or to ensure the company’s financial viability.

In the preparation of the board of directors’ proposal for these compensation guidelines, the board has considered information on the employees’ total remuneration, the components of the remuneration and growth rates over time. Compensation consists of the following components:

• Fixed base pay
• Short- and long-term variable pay
• Special compensation
• Pension benefits
• Other benefits
• Pay during period of notice of termination or resignation

Market-based compensation

The company has acquired high quality benchmark data from third party sources to secure that compensation to the CEO and other senior executives reflects what is offered to executives in comparable positions in other companies. Market rate is also informed through external recruitment processes.

Guidelines for compensation to senior executives and remuneration report: