Remuneration, Management and Board of Directors
The 2017 Annual General Meeting 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 2018 AGM, see page chapter Guidelines for remuneration of senior executives.
Remuneration of the President and other senior executives
Remuneration of the President and other senior executives is presented in Note C3. Variable remuneration for the CEO, CFO and Business Unit Presidents was maximized to a total of 100% of the fixed salary for 2017. For two Business Unit Presidents, stationed in Latin America and the US, the maximum outcome is 110–130%, while the corresponding limit for other senior executives is 90%.
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, operating 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 amounts to SEK 8,875,000 in accordance with the AGM’s resolution. See Note C4 for further information.