NWG // FINANCIAL INFORMATION
The 2020 Annual General Meeting resolved on new guidelines for remuneration to senior executives . These guidelines can be found in full in note 6 .
New Wave Group has no specially appointed remuneration committee . Remuneration issues are instead dealt with by the Board in its entirety , whereby a member who is a member of the company management does not participate in the work . The Board as a whole is thus tasked with monitoring and evaluating the ongoing and completed programs for variable remuneration for company management , as well as following and evaluating the application of the guidelines for remuneration to senior executives that the Annual General Meeting must decide on by law . In addition , the Board shall monitor and evaluate current remuneration structures and remuneration levels in the company .
Guidelines for remuneration to senior executives
Guidelines for senior executives include board members , the CEO and other persons the management of New Wave Group AB (“ the Company ”).
A successful implementation of the Company ' s business strategy and the safeguarding of the Company ' s long-term interests , including its sustainability , presupposes that the Company can recruit and retain qualified employees . This requires that the Company can offer competitive remuneration . The guidelines enable senior executives to be offered a competitive total remuneration .
The forms of compensation , etc . The total remuneration for each senior executive must be market-based and may consist of the following components : fixed cash salary , variable cash remuneration , pension benefits and other benefits . In addition to and independently of these guidelines , the Annual General Meeting may decide on , for example , share and share price-related remuneration . Fixed and variable remuneration shall be related to the senior executive ' s responsibility and authority .
The decision-making process for establishing , reviewing and implementing the guidelines The Board shall prepare proposals for new guidelines at least every four years and submit the proposal for resolution at the Annual General Meeting . The guidelines shall apply until new guidelines have been adopted by the Annual General Meeting . The Board shall also monitor and evaluate programs for variable remuneration for company management , the application of guidelines for remuneration to senior executives and applicable remuneration structures and remuneration levels in the Company . The members of the Board , except the CEO , are independent in relation to the Company and the company management . The CEO or other persons in the company management do not attend the Board of Directors ' consideration of and decisions on remuneration-related issues , insofar as they are affected by the issues .
Deviating from the guidelines The Board may decide to temporarily deviate from the guidelines in whole or in part , if in an individual case there are special reasons for this and a deviation is necessary to meet the Company ' s long-term interests , including its sustainability , or to ensure the Company ' s financial viability .
No deviations have been made from the guidelines during the current year .
Related party transactions
Lease agreements exist with related companies , and goods are also sold to related companies . Associated companies to the CEO have purchased goods and services , as well as received compensation for consultancy services performed and goods sold . In addition , there are transactions with related parties at immaterial values . All transactions have been made on market terms . For further description , see note 17 .
Risks and risk management
New Wave Group ’ s international operations mean that it is continuously exposed to various financial risks . The financial risks are interest rate risks , currency and liquidity and credit risks . In order to minimize the effect these risks may have on earnings , the Group has a risk policy .
The Group ’ s policy is to have short fixed-rate interest periods , which means that fluctuating short-term interest rates have a rapid impact on the Group ’ s net interest income .
A significant portion of New Wave Group ’ s sales are made in foreign currency ( 74 %). The Group is exposed to changes in exchange rates in the future flows of payments related to firm commitments and to loans and bank deposits in foreign currencies , i . e . transaction exposure . The Group ’ s financial statements are also affected by translating the results and net assets of foreign subsidiaries into SEK , i . e . translation exposure .
Due to the relatively capital-intensive nature of its activities and its expansive growth strategy , New Wave Group has a need to secure its funding . For a growth group like New Wave Group it is essential to ensure that sufficient liquidity is available to fund future expansion and that there is a high degree of flexibility when acquisition opportunities occur . It is also important that a sound balance between equity and financing through debt is kept , as New Wave Group ’ s goal is to achieve an equity ratio in excess of 30 %.
The Group is exposed to credit risk from its operating activities , primarily accounts receivable , and from its financing activities which include deposits at banks and financial institutions , currency futures and other financial instruments . The Group ’ s total exposure to credit risk amounted , at year-end , to SEK 1,448.1 ( 1,627.6 ) million .
For a more extensive description of the Group ’ s risk exposures and risk management see note 16 .
Environment
New Wave Group has a responsibility to ensure that our business operations , and the business operations of our suppliers ,
062 // ANNUAL REPORT