NWG Annual Report 2019 - EN NWG Annual Report 2019 - EN | Page 125

NWG // FINANCIAL INFORMATION
health insurance, shall be premium defined unless
the individual concerned is subject to defined benefit
pension according to an individual agreement or
under mandatory collective agreement provisions. The
pension premiums for premium defined pension shall
amount to not more than 30 percent of the fixed annual
cash salary. The CEO’s variable cash remuneration shall
not qualify for pension benefits. Any other executive’s
variable cash remuneration shall qualify for pension
benefits to the extent required by mandatory collective
agreement provisions. If the variable cash remuneration
qualifies for pension benefits, the pension premiums for
premium defined pension shall amount to not more than
30 percent of the fixed annual cash salary.
Other benefits
Other benefits may include, for example, life insurance,
medical insurance (Sw: sjukvårdsförsäkring) and
company cars. Such benefits may amount to not more
than ten percent of the fixed annual cash salary.
For employments governed by rules other than
Swedish, pension benefits and other benefits may be duly
adjusted for compliance with mandatory rules or esta-
blished local practice, taking into account, to the extent
possible, the overall purpose of these guidelines.
Executives who are expatriates to or from Sweden
may receive additional remuneration and other benefits
to the extent reasonable in light of the special circum-
stances associated with the expat arrangement, taking
into account, to the extent possible, the overall purpose
of these guidelines. Such benefits may not in total exceed
20 percent of the fixed annual cash salary.
Remuneration to board members in
addition to the board fee
If a board member, who is elected by the annual general
meeting and is not employed by the Company, carries
out work in addition to his/her duties as board member,
the board member may be entitled to consulting fees or
other customary remuneration. The board of directors
shall decide if consulting fees or other customary remu-
neration shall be payable.
Termination of employment
Upon termination of an employment, the notice period
may not exceed twelve months. Fixed cash salary during
the notice period and severance pay may not together
exceed an amount corresponding to the fixed cash salary
for twelve months. When termination is made by the
executive, the notice period may not exceed six months,
without any right to severance pay.
Additionally, remuneration may be paid for
non-compete undertakings. Such remuneration shall
compensate for loss of income and shall only be paid in
so far as the previously employed executive is not entitled
to severance pay. The remuneration shall amount to not
more than 60 percent of the fixed cash salary at the
time of termination of employment, unless otherwise
provided by mandatory collective agreement provisions
and be paid during the time the non-compete under-
taking applies, however not for more than twelve months
following termination of employment.
Salary and employment conditions
for employees
In the preparation of the board of directors’ proposal for
these remuneration guidelines, salary and employment
conditions for employees of the Company have been
taken into account by including information on the
employees’ total income, the components of the remu-
neration and increase and growth rate over time, in the
board of directors’ basis of decision when evaluating
whether the guidelines and the limitations set out herein
are reasonable.
The decision-making process to determine,
review and implement the guidelines
The board of directors shall prepare a proposal for
new guidelines at least every fourth year and submit
it to the general meeting. The guidelines shall be in
force until new guidelines are adopted by the general
meeting. The board of directors shall also monitor and
evaluate programs for variable remuneration for the
executive management, the application of the guidelines
for executive remuneration as well as the current
remuneration structures and compensation levels in
the Company. The board members are independent of
the Company and its executive management. The CEO
and other members of the executive management do not
participate in the board of directors’ processing of and
resolutions regarding remuneration-related matters in
so far as they are affected by such matters.
Derogation from the guidelines
The board of directors may temporarily resolve to
derogate from the guidelines, in whole or in part, if in
a specific case there is special cause for the derogation
and a derogation is necessary to serve the Company’s
long-term interests, including its sustainability, or to
ensure the Company’s financial viability.
ANNUAL REPORT // 125