The annual general meeting held on 16 May 2017 resolved on guidelines for remuneration to the senior executives of Cherry, as set out below, to apply until the annual general meeting 2018.
Remuneration to the Board of directors
Remuneration according to the AGM’s decision is paid to the Chairman and members of the Board and Audit Committee. Fees will be paid out with a total of SEK 3,782,000, of which 2,532,000 (including social security contributions) to the Chairman of the Board who also work in the company, and SEK 250,000 each to other Board members.
Remuneration to the CEO and other senior executives
Remuneration to the CEO and other senior executives consists of basic salary, in some cases variable salary, pension and other benefits and is decided by the Remuneration Committee.
Remuneration to the CEO shall consist of a fixed basic salary and, in some cases, a variable salary based on the Group’s net sales and earnings and pensions according to the ITP plan. The variable component shall, as appropriate, be maximized to 100 percent of the fixed compensation amount and shall be based on business related objects approved by the Board. Salary to the CEO is negotiated by the Chairman of the Board and decided by the Board.
Remuneration to other senior executives shall consist of a fixed basic salary and, in some cases, variable salary and occupational pension under the ITP plan or specially agreed premium-based occupational pension scheme. Any premium-based occupational pension scheme shall be maximized to 35 percent of the pensionable annual salary. The variable component shall be maximized to 100 percent of the fixed compensation amount and shall be based on business related objects approved by the Board. Salaries to senior executives are negotiated by the CEO and decided by the Chairman of the Board.
The notice period should normally be six to twelve months if the termination takes place on the initiative of the Company and six to nine months if the termination takes place on the initiative of the executive. In the case of termination by the Company, severance pay may be paid up to a maximum amount of 12 months’ salary.
The Board is entitled, in individual cases and for special reasons, to depart from the above guidelines for remuneration. If such deviation occurs, information about this and the reason for the deviation shall be reported in the proposal for a decision on guidelines for remuneration to senior executives presented at the next AGM.