Remuneration to senior executives

For the CEO and other members of Group Management, the principles for remuneration approved by the 2016 AGM apply. The Board of Directors proposes that the corresponding principles should be approved by the 2017 AGM for the period up to and including the 2018 AGM. The principles set forth in this item shall apply to remuneration and other employment conditions of Group Management.

The principles shall apply to contracts of employment entered into after the 2017 AGM and also to amendments made thereafter to contracts of employment which are in force. Remuneration to Group Management is determined by the Board of Directors based on proposals from the Remuneration Committee.

Remuneration to Group Management 2015-2016 1)
SEKt Fixed salary Variable salary Pension costs Long-term incentive Other benefits Severance pay etc Total 2016 Total 2015
President and CEO 9,500 8,997 3,800 4,613 180 - 27,090 20,564
Other members of Group Management 32,822 32,413 11,946 10,703 2,214 - 90,098 71,979
Total 42,322 41,410 15,746 15,316 2,394 - 117,188 92,543
1) For more information on the Remuneration to Group Management see note 4 in the Annual Report 2016.


In general, remuneration to members of Group Management shall be based on the position held, individual performance, and Group performance, and shall be on a competitive basis in the country of employment. The overall remuneration package for Group Management is comprised of fixed salary, variable salary in the form of short-term incentives based on annual performance targets, longterm incentives, pension and other benefits. In addition, there are conditions on notice of termination and severance pay.

Husqvarna Group shall aim to offer a competitive total remuneration level with a primary focus on ”pay for performance”.

Fixed salary

Fixed salary shall constitute the basis for total remuneration. The salary shall be related to the relevant market and shall reflect the degree of responsibility involved in the position. The salary levels shall be reviewed regularly (normally through an annual evaluation of salaries) in order to ensure continued competitiveness and in order to correctly reward performance.

Variable salary (Short-term Incentive, ”STI”)

Members of Group Management shall be entitled to STI in addition to the fixed salary. The STI shall be based on the financial result for the Group and/or for the business unit for which the member of Group Management is responsible. In addition, performance indicators can be used in order to focus on matters of special interest to the Company.

Clearly defined objectives for ”target” and ”stretch” levels of performance shall be stated in the beginning of the year and reflect the plans approved by the Board of Directors. STI shall be dependent on the position and may amount to a maximum of 50% of the fixed salary on attainment of the ”target” level and a maximum of 100% of the fixed salary on attainment of ”stretch” level, which also is the maximum STI.

In the US, the STI component is normally higher and may amount to a maximum of 100% on attainment of the ”target” level and a maximum of 150% of the fixed salary on attainment of the ”stretch” level.

The Board of Directors decides whether the maximum levels, 50/100/150%, shall be utilized or if a lower level shall be used.

Long-term incentive (“LTI”)

The Board of Directors will annually evaluate if a long-term incentive program (e.g. share or share price based) should be proposed to the AGM. For more information concerning the long-term incentive program, see note 4 in the Annual Report.

Pensions and insurance

Pension and disability benefits shall be designed to reflect regulations and practice in the country of employment and the value of the benefits shall match normally accepted levels in the country. If possible, pension plans shall be defined contribution plans in accordance with the Pension and other Benefits Policy.

Other benefits

Other benefits can be provided in accordance with normal practice in the country where the member of Group Management is employed. However, these benefits shall not constitute a significant part of the total remuneration.

Notice of termination and severance pay

Members of Group Management shall be offered notice periods and levels of severance pay which are in line with accepted practice in the country where the member is employed. Members of Group Management shall be obliged not to compete with the Company during the notice period. Based on the circumstances in each case, a non-compete obligation with continued payment may be applied also after the end of the notice period. Such non-compete obligation shall not apply for more than 24 months from the end of the notice period.

Previously decided remuneration which has not become payable

Bonuses which have not become payable amount to a maximum of SEK 8m.

Authority for the Board to deviate from the principles

Under special circumstances, the Board of Directors may deviate from these principles. In the case of such deviation, the next AGM shall be informed of the reasons.

Remuneration to the Board 2016

Remuneration to AGM-elected Board members is resolved by the AGM based on proposals from the Nomination Committee. The 2016 AGM resolved on fees of SEK 5,950t.

No consulting fees were paid to Board members. No board fees are paid to Board members who are also employed by the Group.

For more information concerning remuneration, see note 4 in the Annual Report.

Annual Report 2016