Note 9 Employees, personnel costs and remuneration to senior officers
Payroll costs for employees
| Group, MSEK | 2016 | 2015 | |
| Salaries and remuneration | 6,211 | 5,889 | |
| Pension costs, defined contribution plans | 614 | 556 | |
| Social insurance costs | 1,909 | 1,799 | |
| Total | 8,734 | 8,244 | |
Average number of employees
| No. of employees 2016 | Of were men 2016 percent | No. of employees 2015 | Of were men 2015 percent | |
| Parent company | ||||
| Sweden | 128 | 49 | 119 | 50 |
| Subsidaries | ||||
| Sweden | 11,403 | 89 | 10,917 | 90 |
| Norway | 1,508 | 92 | 1,328 | 92 |
| Finland | 670 | 86 | 669 | 86 |
| Poland | 3 | 67 | 3 | 67 |
| Total in subsidaries | 13,584 | 89 | 12,917 | 90 |
| Total in Group | 13,712 | 89 | 13,036 | 90 |
Gender distribution in the Board of Directors and executive management
| 2016 | 2015 | |
| Percentage of women | Percentage of women | |
| Parent company | ||
| The Board of Directors | 27% | 20% |
| Other senior officers | 33% | 33% |
| Group total | ||
| The Board of Directors 1) | 9% | 12% |
| Other senior officers 2) | 11% | 12% |
1) Refers to the Board of Directors in the parent company and boards in subsidiaries.
2) Other senior officers in the Group refers to the other senior officers in the parent company along with business area management.
Salaries and other remuneration as well as pension costs for leading senior officers
| Group 2016, MSEK | Board of Directors and senior officers (14 persons) 1) |
| Salaries and remuneration | 31 |
| – of which variable remuneration etc. | – |
| Pension costs | 20 |
| – of which pension costs for variable remuneration | 11 |
1) The group leading senior officers refers to executive management. During 2016 the group consisted of six persons, three of which were in the parent company.
| Group 2015, MSEK | Board of Directors and senior officers (13 persons) 1) |
| Salaries and remuneration | 24 |
| – of which variable remuneration etc. | – |
| Pension costs | 20 |
| – of which pension costs for variable remuneration | 11 |
1) The group leading senior officers refers to executive management. During 2015 the group consisted of six persons, three of which were in the parent company.
Salaries and other remuneration separated between leading senior officers and other employees, and social security costs
| Parent company 2016, MSEK | Board of Directors and senior officers (11 persons) 1) | Other employees | Total |
| Salaries and remuneration | 22 | 92 | 114 |
| – of which variable remuneration etc. | – | 1 | 1 |
| Social security costs | 20 | 57 | 77 |
| – of which pension costs | 5 | 20 | 25 |
| – of which pension costs for variable remuneration | 6 | 2 | 8 |
1) The group leading senior officers refers to executive management. During 2016 the group consisted of six persons, three of which were in the parent company.
| Parent company 2015, MSEK | Board of Directors and senior officers (10 persons) 1) | Other employees | Total |
| Salaries and remuneration | 15 | 84 | 99 |
| – of which variable remuneration etc. | – | 2 | 2 |
| Social security costs | 18 | 52 | 70 |
| – of which pension costs | 5 | 19 | 24 |
| – of which pension costs for variable remuneration | 6 | – | 6 |
1) The group leading senior officers refers to executive management. During 2015 the group consisted of six persons, three of which were in the parent company.
Salaries and other remuneration for leading senior officers in 2016
| Thousands, SEK | Basic salary/Board remuneration | Variable remuneration | LTI-program 1) | Other benefits | Pension costs | Total |
| Chairman of the Board, Göran Grosskopf | 650 | 650 | ||||
| Vice Chairman of the Board, Mats Paulsson | 3,030 | 3,030 | ||||
| Other members of the Board | ||||||
| Karl-Axel Granlund | 295 | 295 | ||||
| Lars Sköld | 265 | 265 | ||||
| Fredrik Paulsson | 265 | 265 | ||||
| Kerstin Lindell | 265 | 265 | ||||
| Nina Udnes Tronstad | 235 | 235 | ||||
| Malin Persson | 235 | 235 | ||||
| Total related to Board of Directors from the parent company | 5,240 | 5,240 | ||||
| CEO, Jesper Göransson | 5,730 | 1,936 | 1,045 | 85 | 2,486 | 11,282 |
| Other senior officers, remuneration from the parent company | 10,741 2) | 1,914 | 1,135 | 167 | 2,488 | 16,445 |
| Other senior officers, remuneration from subsidiaries | 8,825 | 2,934 | 1,762 | 172 | 3,936 | 17,629 |
| Total | 30,536 | 6,784 | 3,942 | 424 | 8,910 | 50,596 |
| Remuneration from the parent company | 21,711 | 3,850 | 2,180 | 252 | 4,974 | 32,967 |
| Remuneration from subsidiaries | 8,825 | 2,934 | 1,762 | 172 | 3,936 | 17,629 |
1) The amount depends on the AGM’s decision regarding the size of dividends. Furthermore, senior officers must still be employed on December 31, 2017 to obtain the allocated amount. For more information see Long-term incentive program (LTI program) here.
2) Includes 2016 provisions for termination salaries.
Salaries and other remuneration for leading senior officers in 2015
| Thousands, SEK | Basic salary/Board remuneration | Variable remuneration | LTI-program 1) | Other benefits | Pension costs | Total |
| Chairman of the Board, Göran Grosskopf | 620 | 620 | ||||
| Vice Chairman of the Board, Mats Paulsson | 3,060 | 3,060 | ||||
| Other members of the Board | ||||||
| Karl-Axel Granlund | 295 | 295 | ||||
| Lars Sköld | 235 | 235 | ||||
| Fredrik Paulsson | 235 | 235 | ||||
| Kerstin Lindell | 235 | 235 | ||||
| Nina Udnes Tronstad | 235 | 235 | ||||
| Total related to Board of Directors from the parent company | 4,915 | 4,915 | ||||
| CEO, Jesper Göransson | 4,923 | 2,136 | 671 | 82 | 2,564 | 10,376 |
| Other senior officers, remuneration from the parent company | 5,292 | 2,319 | 729 | 176 | 2,960 | 11,476 |
| Other senior officers, remuneration from subsidiaries | 8,461 | 3,601 | 1,132 | 159 | 3,808 | 17,161 |
| Total | 23,591 | 8,056 | 2,532 | 417 | 9,332 | 43,928 |
| Remuneration from the parent company | 15,130 | 4,455 | 1,400 | 258 | 5,524 | 26,767 |
| Remuneration from subsidiaries | 8,461 | 3,601 | 1,132 | 159 | 3,808 | 17,161 |
1) The amount depends on the AGM’s decision regarding the size of dividends. Furthermore, senior officers must still be employed on December 31, 2017 to obtain the allocated amount. For more information see Long-term incentive program (LTI program) here.
Comments on the tables
From time to time the CEO and other senior officers may be offered variable remuneration. Other benefits refer to company cars.
Pension costs refer to costs charged to the year. See note 30 for additional information about pensions. In 2016 the group senior officers consisted of six persons (six), of which three officers (three) were in the parent company.
The Board of Directors
The 2016 AGM decided on a remuneration to external members of the Board of a maximum of SEK 5,240 thousand (4,915), of which SEK 560 thousand (535) consisted of remuneration to the Chairman of the Board. A remuneration of SEK 2,765 thousand, unchanged in comparison to last year, was decided as a special compensation to the Vice Chairman of the Board for his availability to the Group in matters concerning customers and the market. Remuneration to all members of the Board was a maximum of SEK 4,970 thousand (4,560), and SEK 180 thousand (180) for work in the remuneration and finance committees and SEK 90 thousand (175) for work in audit committee. During the year total remuneration amounted to SEK 5,240 thousand (4,915).
Remuneration is not paid to members of the Board who are permanent employees of the Group. There are no agreements on future pension/retirement remuneration or other benefits either for the Chairman of the Board of Directors or for other members of the Board.
Principles for the remuneration of senior officers
The group other senior officers is comprised of six senior officers who are members of executive management. The principles for remuneration of senior officers were adopted by the 2016 AGM.
Remuneration to the CEO and other senior officers consists of a fixed salary, any variable remuneration, extra health insurance and those benefits otherwise enjoyed by other Peab employees as well as pension. All pension obligations are defined contribution pensions. The total remuneration paid to each senior officer is based on market terms and the responsibilities and qualifications of the senior officer.
From time to time, senior officers may be offered variable remuneration. Such variable remuneration may not exceed 60 percent of the regular salary and must above all be based on the result goals for pre-tax profit of the Peab Group. Variable remuneration is decided upon each financial year. Variable remuneration for the financial year 2016 was maximized at SEK 3,240 thousand (2,772) for the CEO and a total of SEK 8,114 thousand (7,682) for the other senior officers.
Variable remuneration is settled the year after being earned and may either be paid out as salary or as a one-off pension premium. If variable remuneration is paid out on a one-off basis certain adjustments are made so as to neutralize the total cost for Peab.
From time to time, senior officers may be offered to participate in a LTI program. This variable remuneration is based on the operative operating margin for the Group and the dividend level. For senior officers and the CEO the upper limit is 40 percent of their fixed annual salary. The result of the LTI program is placed in a pension savings in a financial instrument connected to the Peab share. Provisions for the LTI program for 2016 were maximized at SEK 2,160 thousand for the CEO and a total of SEK 5,410 thousand for the other senior officers.
Notice on the part of Peab is twelve months combined with severance pay consisting of twelve months salary. Notice on the part of senior officers is six months combined with severance pay consisting of six months salary.
The CEO
The CEO of Peab AB, Jesper Göransson, has in 2016 received wages and other remuneration, including benefits, totaling SEK 5,815 thousand (5,005). In addition, he has received variable remuneration for 2016 of SEK 1,936 thousand (2,136) and a provision for LTI-program of SEK 1,045 thousand (671), which will be placed in a pension savings connected to the Peab share. Pension premiums for the year were SEK 2,486 thousand (2,564).
Pension commitment for the CEO give him the right to pension from the age of 62. Annual pension premiums of 47 percent of basic salary are paid for this commitment. These pensions are part of defined contribution plans.
Notice on the part of Peab is twelve months with a reduction for any salary from a new employer. Severance pay consisting of twelve months salary is paid out upon termination of employment. Notice on the part of the CEO is six months combined with severance pay consisting of six months salary.
Other senior officers
The term other senior officers refers to the five other persons in addition to the CEO that make up Peab’s executive management. Salary and other remuneration including benefits for other senior officers amounted to SEK 19,905 thousand (14,088) which includes provisions for termination salaries. In addition variable remuneration for 2016 amounted to SEK 4,848 thousand (5,920) and provision for LTI-program amounted to SEK 2,897 thousand (1,861), which will be placed in pension savings connected to the Peab share.
Pension premiums paid for other senior officers amounted to SEK 6,424 thousand (6,768) during the year.
Pension commitment for the other senior officers give them the right to pension from the age of 62. Annual pension premiums of 47 percent of basic salary are paid for this commitment. These pensions are part of defined contribution plans.
Notice on the part of Peab is twelve months with a reduction for any salary from a new employer. Severance pay consisting of twelve months salary is paid out upon termination of employment. Notice on the part of the other senior officers is six months combined with severance pay consisting of six months salary.
Long-term incentive program (LTI program)
From time to time, senior officers may be offered to participate in a LTI program. A new LTI program has been launched for 2015 – 2017 with annual provisions based on meeting the operating margin goal for the Group. The provisions’ size is related to the total dividends disbursed to shareholders for the year. The program is open to approximately 500 of the Group’s key employees. In order for an employee to receive their share of the outcome in the LTI program the employee must still work for Peab on 31 December 2017. For senior officers and the CEO the upper limit is 40 percent of their fixed annual salary. For other positions the upper limit is 15-35 percent of their fixed annual salary, depending on their position. The result of the LTI program is either placed in a pension savings connected to the Peab share or alternatively paid out to the employee as salary in 2018. In 2016 Peab made a provision of SEK 66 million (35).
Profit-sharing foundation
In 2007, Peab founded a profit-sharing foundation. The object of the profit-sharing foundation is to create greater participation through employee co-ownership and to better employees’ financial situation after retirement. Individual annual shares in profits is related to the employee’s profit sharing entitling work hours. Upon retirement employees can withdraw their share in the foundation. Under the foundation’s investment policy, its assets must be mainly invested in shares in Peab. In 2016 Peab allocated SEK 52 million. This amount less payroll tax will be paid into the foundation in 2017. In 2015 Peab allocated SEK 46 million including payroll tax. Senior officers are not entitled to benefits from the profit-sharing foundation.