Remuneration of management

The Annual General Meeting 2017 adopted the following remuneration policy for the management. The policy means that a bonus may be offered of a maximum of 50 percent of the fixed salary.

The policy covers salary and other terms for the management of KappAhl AB, including for the CEO.

The fundamental principle for the remuneration of management in KappAhl is that salary and other employment terms and conditions shall enable KappAhl to attract and retain competent management persons.

Fixed salary

Management persons shall be offered a market level fixed salary and based on the employee’s responsibility and performance. Salary shall be established for calendar year periods.

Bonuses etc

Management persons may from time to time be offered bonuses. The CEO and the CFO may be offered a bonus of a maximum of 50 percent of the fixed salary and other management persons may be offered a bonus of a maximum of 33 percent of the fixed salary.

Bonuses may on the initiative of a management person, before the bonus is disposable, be converted into extra pension provision payment, through so called salary reduction plan.

Bonuses shall primary be based on the operating profit (EBIT), or in exceptional cases as for the rest measurable criteria’s, of the KappAhl Group and shall be established per each financial year.

The Board of Directors and the Remuneration Committee shall annually assess if some form of share-related incentive program shall be presented to the annual shareholders’ meeting.

Non-monetary benefits

Management persons are entitled to extra health insurance as well as all benefits enjoyed by other employees of the Group.

Pension

In addition to what is agreed in collective agreements and other agreement, management persons are entitled to arrange individual pension schemes. Relinquished salaries and bonuses can be used for increased pension provisions, provided that the total cost for KappAhl is unchanged over time.

Notice of termination etc

Management persons and KappAhl must mutually observe a period of six months’ notice of termination. At termination of employment for the CEO from the employer, an unchanged salary for six months and severance payment equal to up to eighteen months is paid, less wages in other employment.

The remuneration policy is reviewed annually and is presented to the Annual General Meeting for approval.