The Board of Directors’ evaluation of compensation of senior executives of Axis AB (publ)
Axis’ compensation of senior executives is established in the guidelines that are decided on each year by the Annual General Meeting. The objective of Axis’ remuneration policy for the senior executives is to offer compensation that promotes retaining and recruiting skilled expertise to the company. To monitor this, the Board has established a Remuneration Committee.
The remunerations committee’s statement regarding remuneration matters etc.
Following the annual general meeting on 20 April 2017 the board of directors established a remuneration committee composed of Biörn Riese (chairman) and Bert Nordberg. During the period between the AGMs on 13 April 2016 and 20 April 2017 Biörn Riese and Bert Nordberg constituted the remuneration committee.
The remuneration committee’s main tasks are to prepare the board’s decisions on issues concerning principles for remuneration, remunerations and other terms of employment for the company management (including the President). The committee shall monitor that the remuneration principles for determining salaries and other remuneration to the President and other members of the company management, as resolved by the annual general meeting, are complied with. Further, the committee shall monitor and evaluate programmes for variable remuneration to the company management, both ongoing and those that have ended during the year, as well as current remuneration structures and levels in the company. The committee shall continuously report to the board of directors.
The 2017 AGM resolved to adopt the board’s proposal for guidelines regarding determination of salary and other remuneration to the President and CEO and other members of the company management.
During the period after the AGM 2017, the remuneration committee followed and evaluated the application of the guidelines for determination of salaries and other remuneration to the President and other members of the company management, which were adopted by the AGM as well as ongoing and completed during the year programs for variable remuneration to the company management as well as remuneration structures and rates of compensation in the company. The committee’s evaluation of the application of these principles shows that they have been complied with.
The remuneration committee’s assessment is that Axis’ remuneration structures and levels are appropriate and entail a reasonable balance between the objective of motivating and rewarding employees and maintained cost efficiency.
The remuneration committee has communicated to the board its recommendations on principles for determining salaries and other remuneration to the company management. The recommendations included the division between fixed and variable salary as well as the proportion of any salary increases. The remuneration committee also proposed criteria for the assessment of bonus outcome etc. The board has discussed the remuneration committee’s proposals and has made resolutions based on the committee’s recommendations.