Remuneration, Management and Board of Directors
The 2018 AGM adopted guidelines for remuneration of senior executives that are based on a total remuneration package comprising a fixed salary, variable salary and other benefits, and a pension; see Note C3. Corresponding guidelines have been proposed to the 2019 AGM, see chapter Other Group information.
Remuneration of the President and other senior executive
Remuneration of the President and other senior executives is presented in Note C3. Variable remuneration for the President, CFO and Business Unit Presidents was maximized to a total of 100% of the fixed salary for 2018. For two Business Unit Presidents, stationed in Latin America and the US, the maximum outcome is 110–130%. The corresponding limit for other senior executives was 90% in 2018.
Variable remuneration and strategic targets
Programs for variable remuneration are formulated to support the Group’s strategic targets. The short-term program is individually adapted and based mainly on cash flow, EBITA margin and organic sales growth. The long-term program is based on the Essity share’s long-term total shareholder return.
Remuneration of the Board
The total remuneration of the AGM-elected Board members amounted to SEK 8,642,000 in accordance with the AGM’s resolution. See Note C4 for further information.