We’re using cookies to give you the best experience possible of Essity.com. Read more about the cookies we use and how to change your settings:
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.
The Annual General Meeting 2017 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 (base salary), possible variable remuneration, additional benefits and pension. Other senior managers include the executive vice presidents, business unit 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 Essity share, from which the shareholders benefit.
The programme for variable remuneration should be formulated so that the board of directors, in the event of exceptional financial conditions, may limit, or forebear, payment of variable remuneration if such a measure is deemed to be reasonable and in accordance with the company’s responsibility to the shareholders, employees and other stakeholders.
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.
Agreed pension benefits are determined either by benefit or charge, or by a combination hereof, and may entitle the senior manager to pension from the age of 60, at the earliest. To earn full defined-benefit pension, 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.
New employment agreements shall to the extent possible entitle senior managers to pension benefits solely determined by charge and be payable from the age of 65.
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 CEO, be resolved by the board of directors.