The Compensation Committee and the Board decide on Skanska's Group management remuneration. These are the guidelines for salaries and other remuneration approved at the latest Annual General Meeting.
Remuneration for senior executives in Skanska AB is to consist of a fixed salary, possible variable remuneration, other customary benefits and pension. The senior executives include the President and CEO and the other members of the Group Leadership Team.
The combined remuneration for each executive must be market-based and competitive in the job market in which the works and outstanding performance should be reflected in the total remuneration package.
Remuneration related to responsibility
Fixed salary and variable remuneration are to be linked to the level of responsibility and authority of the senior executive. The variable remuneration is to be payable in cash and/or shares, and it is to have a ceiling and be related to the fixed salary. To receive shares a three-year vesting period is required and the shares are to be part of a long-term incentive program.
Variable remuneration based on outcome of established targets
Variable remuneration is to be based on performance in relation to established targets and be designed to achieve better alignment betwee the interests of the executives and of the company's shareholder.
The terms for variable remuneration should be designed in such a way thatif exceptional economic conditions exist, the Board has the ability to limit or refrain from paying variable remuneration if such a payment is deemed unreasonable and incompatible with the company's general responsibility to shareholders, employees and other stakeholders.
With respect to the annual bonus, the Board has the possibility of limiting or refraining from paying variable remuneration if it deems such action reasonable for other reasons.
Employment termination and pension
In case of termination or resignation, the normal notice period is six months combined with severance pay equivalent to a maximum of 18 months of fixed salary or, alternatively, a notice period of a maximum 24 months.
Pension benefits are to be either defined-benefit or defined-contribution plans, or a combination of both, and entitle the executive to receive an occupational pension from the age of 65. In individual cases, however, the retirement age may be as low as 60.
To earn full defined-benefit pension, the individual is required to have been employed for as long a period as is required under the company's general pension plan in each respective country. Variable remuneration is not pensionable except in cases where this is stipulated in the rules for a general pension plan (e.g. Sweden's ITP occupational pension plan).
The Board of Directors may deviate from these guidelines if there are special reasons to do so in individual cases.
Compensation Committee and the Board decide on remuneration
The President and CEO's salary and other remuneration are reviewed by the Compensation Committee in preparation for decisions by the Board.
The salary and other remuneration for other senior executives are determined by the Compensation Committee.
For more information related to this area, such as the Compensation Committee's evaluation of the variable remuneration, please view the "related documents" found on this page.