Note 10 Employees, personnel costs and remuneration to senior officers
Costs for remuneration to employees
| Group, MSEK | 2018 | 2017 | |
| Koncernen, Mkr | 2018 | 2017 | |
| Salaries and remuneration etc. | Löner och ersättningar m.m. | 7,217 | 6,792 |
| Pension costs, defined contribution plans | Pensionskostnader, avgiftsbaserade planer | 798 | 702 |
| Social security | Sociala avgifter | 2,132 | 2,034 |
| Total | Summa | 10,147 | 9,528 |
Average number of employees
| No. of employees 2018 | Of which were men 2018 percent | No. of employees 2017 | Of which were men 2017 percent | ||
| Antal anställda 2018 | Varav män 2018 procent | Antal anställda 2017 | Varav män 2017 procent | ||
| Parent company | Moderbolaget | ||||
| Sweden | Sverige | 146 | 45 | 136 | 46 |
| Subsidaries | Dotterföretag | ||||
| Sweden | Sverige | 12,219 | 88 | 12,022 | 88 |
| Norway | Norge | 1,548 | 90 | 1,692 | 92 |
| Finland | Finland | 744 | 83 | 724 | 84 |
| Poland | Polen | 4 | 50 | 4 | 50 |
| Total in subsidaries | Totalt i dotterföretag | 14,515 | 88 | 14,442 | 89 |
| Group | Koncernen | 14,661 | 87 | 14,578 | 88 |
Gender distribution in boards and other senior officers
| 2018 Percentage of women | 2017 Percentage of women | ||
| 2018 Andel kvinnor procent | 2017 Andel kvinnor procent | ||
| Parent company | Moderbolaget | ||
| The Board of Directors | Styrelsen | 27 | 27 |
| Other senior officers | Övriga ledande befattningshavare | 25 | 0 |
| Group | Koncernen | ||
| Boards 1) | Styrelser 1) | 23 | 11 |
| Other senior officers 2) | Övriga ledande befattningshavare 2) | 22 | 15 |
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 2018‚ MSEK | Board of Directors and senior officers (15 persons) 1) | |
| Koncernen 2018. Mkr | Styrelse och ledande befattningshavare (15 personer) 1) | |
| Salaries and other remuneration | Löner och andra ersättningar | 29 |
| – of which variable remuneration etc. | – varav rörlig ersättning o.dyl. | – |
| Pension costs | Pensionskostnader | 23 |
| – of which pension costs for variable remuneration | – varav pensionskostnader från rörlig ersättning | 12 |
| Group 2017‚ MSEK | Board of Directors and senior officers (14 persons) 1) | |
| Koncernen 2017. Mkr | Styrelse och ledande befattningshavare (14 personer) 1) | |
| Salaries and other remuneration | Löner och andra ersättningar | 25 |
| – of which variable remuneration etc. | – varav rörlig ersättning o.dyl. | – |
| Pension costs | Pensionskostnader | 25 |
| – of which pension costs for variable remuneration | – varav pensionskostnader från rörlig ersättning | 16 |
Salaries and other remuneration divided among leading senior officers and other employees as well as social security costs
| Parent company 2018‚ MSEK | Board of Directors and senior officers (12 persons) 1) | Other employees | Total | |
| Moderbolaget 2018. Mkr | Styrelse och ledande befattningshavare (12 personer) 1) | Övriga anställda | Totalt | |
| Salaries and other remuneration | Löner och andra ersättningar | 20 | 102 | 122 |
| – of which variable remuneration etc. | – varav rörlig ersättning o.dyl. | – | 2 | 2 |
| Social security costs | Sociala kostnader | 24 | 69 | 93 |
| – of which pension costs | – varav pensionskostnader | 7 | 22 | 29 |
| – of which pension costs for variable remuneration | – varav pensionskostnader från rörlig ersättning | 8 | 4 | 12 |
| Parent company 2017‚ MSEK | Board of Directors and senior officers (11 persons) 1) | Other employees | Total | |
| Moderbolaget 2017. Mkr | Styrelse och ledande befattningshavare (11 personer) 1) | Övriga anställda | Totalt | |
| Salaries and other remuneration | Löner och andra ersättningar | 17 | 93 | 110 |
| – of which variable remuneration etc. | – varav rörlig ersättning o.dyl. | – | 2 | 2 |
| Social security costs | Sociala kostnader | 26 | 63 | 89 |
| – of which pension costs | – varav pensionskostnader | 6 | 19 | 25 |
| – of which pension costs for variable remuneration | – varav pensionskostnader från rörlig ersättning | 10 | 3 | 13 |
Salaries and other remuneration for leading senior officers in 2018
| Thousands, SEK | Basic salary/Board remuneration | Variable remuneration | LTI-program 1) | Other benefits/ remunerations | Pension costs | Total | |
| Kkr | Grundlön/ styrelse-arvode | Rörlig ersättning | LTI-program 1) | Övriga förmåner/ ersättningar | Pensions-kostnad | Summa | |
| Chairman of the Board, Göran Grosskopf | Styrelsens ordförande, Göran Grosskopf | 980 | 980 | ||||
| Vice Chairman of the Board, Mats Paulsson | Styrelsens vice ordförande, Mats Paulsson | 460 | 460 | ||||
| Other members of the Board | Övrig styrelse | ||||||
| Karl-Axel Granlund | Karl-Axel Granlund | 520 | 520 | ||||
| Lars Sköld | Lars Sköld | 520 | 520 | ||||
| Fredrik Paulsson | Fredrik Paulsson | 460 | 460 | ||||
| Kerstin Lindell | Kerstin Lindell | 460 | 460 | ||||
| Liselott Kilaas | Liselott Kilaas | 460 | 460 | ||||
| Malin Persson | Malin Persson | 400 | 400 | ||||
| Board of Directors fees, remuneration from the parent company | Styrelsearvode, ersättning från moderbolaget | 4,260 | 4,260 | ||||
| CEO, Jesper Göransson | Verkställande direktör, Jesper Göransson | 7,200 | 2,477 | 1,389 | 563 | 3,668 | 15,297 |
| Other senior officers, remuneration from the parent company | Andra ledande befattningshavare, ersättning från moderbolaget | 7,500 | 2,519 | 1,389 | 729 | 3,604 | 15,741 |
| Other senior officers, remuneration from subsidiaries | Andra ledande befattningshavare, ersättning från dotterföretag | 8,412 | 2,893 | 1,625 | 641 | 3,395 | 16,966 |
| Total | Summa | 27,372 | 7,889 | 4,403 | 1,933 | 10,667 | 52,264 |
| Remuneration from the parent company | Ersättning från moderbolaget | 18,960 | 4,996 | 2,778 | 1,292 | 7,272 | 35,298 |
| Remuneration from subsidiaries | Ersättning från dotterföretag | 8,412 | 2,893 | 1,625 | 641 | 3,395 | 16,966 |
Salaries and other remuneration for leading senior officers in 2017
| Thousands, SEK | Basic salary/Board remuneration | Variable remuneration | LTI-program 1) | Other benefits/ remunerations | Pension costs | Total | |
| Kkr | Grundlön/ styrelse-arvode | Rörlig ersättning | LTI-program 1) | Övriga förmåner/ ersättningar | Pensions-kostnad | Summa | |
| Chairman of the Board, Göran Grosskopf | Styrelsens ordförande, Göran Grosskopf | 720 | 720 | ||||
| Vice Chairman of the Board, Mats Paulsson | Styrelsens vice ordförande, Mats Paulsson | 330 | 330 | ||||
| Other members of the Board | Övrig styrelse | ||||||
| Karl-Axel Granlund | Karl-Axel Granlund | 360 | 360 | ||||
| Lars Sköld | Lars Sköld | 420 | 420 | ||||
| Fredrik Paulsson | Fredrik Paulsson | 330 | 330 | ||||
| Kerstin Lindell | Kerstin Lindell | 360 | 360 | ||||
| Nina Udnes Tronstad | Nina Udnes Tronstad | 300 | 300 | ||||
| Malin Persson | Malin Persson | 300 | 300 | ||||
| Board of Directors fees, remuneration from the parent company | Styrelsearvode, ersättning från moderbolaget | 3,120 | 3,120 | ||||
| CEO, Jesper Göransson | Verkställande direktör, Jesper Göransson | 6,600 | 3,270 | 1,806 | 516 | 3,250 | 15,442 |
| Other senior officers, remuneration from the parent company | Andra ledande befattningshavare, ersättning från moderbolaget | 6,600 | 3,270 | 1,754 | 651 | 3,153 | 15,428 |
| Other senior officers, remuneration from subsidiaries | Andra ledande befattningshavare, ersättning från dotterföretag | 7,740 | 3,835 | 2,008 | 587 | 3,135 | 17,305 |
| Total | Summa | 24,060 | 10,375 | 5,568 | 1,754 | 9,538 | 51,295 |
| Remuneration from the parent company | Ersättning från moderbolaget | 16,320 | 6,540 | 3,560 | 1,167 | 6,403 | 33,990 |
| Remuneration from subsidiaries | Ersättning från dotterföretag | 7,740 | 3,835 | 2,008 | 587 | 3,135 | 17,305 |
Comments on the tables
From time to time the CEO and other senior officers may be offered variable remuneration. Other benefits refer primarily to company cars and vacation pay.
Pension costs refer to costs charged to the year. See note 30 for additional information about pensions. In 2018 the group senior officers consisted of seven persons (six), of which four officers (three) were in the parent company. Until October 2018 the group senior officers consisted of six persons, of which three officers were in the parent company.
The Board of Directors
The 2018 AGM decided on a total remuneration to members of the Board of SEK 4,260 thousand (3,120), of which SEK 3,600 thousand (2,700) refers to Board work and SEK 660 thousand (420) refers to committee work. Compensation to the Chairman of the Board was SEK 800 thousand (600) and SEK 2,800 thousand (2,100) was divided among the other Board members. Compensation for work on the Remuneration Committee was SEK 180 thousand (90), SEK 180 thousand (90) for work on the Finance Committee and SEK 300 thousand (240) for work on the Audit Committee.
Remuneration is not paid to members of the Board who are permanent employees of the Group. There are no agreements for future pension/leaving remuneration or other benefits either for the Chairman of the Board of Directors or for other members of the Board.
Principles for remuneration to senior officers
The group senior officers is comprised of seven senior officers who are members of executive management. Until 1 November 2018 the group was comprised of six senior officers. The principles for remuneration to senior officers were adopted by the 2018 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 their regular salary and is primarily based on the Peab Group’s profitability and, from time to time, essential Group goals. Variable remuneration is decided for each financial year. Variable remuneration for the financial year 2018 was maximized at SEK 4,320 thousand (3,960) for the CEO and a total of SEK 9,442 thousand (8,604) for the other senior officers.
Variable remuneration is settled the year after being earned and may either be paid out as salary or placed as pension in financial instruments connected to the Peab share. If it is paid out as a one-off defined pension contribution 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. For senior officers and the CEO the upper limit (including social security) 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 2018 were maximized at SEK 2,880 thousand (including social security) for the CEO and a total of SEK 6,245 thousand (including social security) for the other senior officers.
The period of notice from Peab is, at the most, 24 months and the period of notice from Senior officers is, at the most, 6 months. If severance pay is paid the total remuneration for salary during the period of notice and severance pay may not exceed 24 months wages.
The CEO
The CEO of Peab AB, Jesper Göransson, has in 2018 received a salary and other remuneration, including benefits, totaling SEK 7,763 thousand (7,116). In addition, he has received variable remuneration for 2018 of SEK 2,477 thousand (3,270) and a provision for the LTI program of SEK 1,389 thousand (1,806) has been made, which was placed in a pension savings in a financial instrument connected to the Peab share. Pension contributions for the year were SEK 3,668 thousand (3,250).
The CEO has the right to retire from the age of 62. Annual pension contributions of 47 percent of basic salary are paid to meet this pledge. These are defined contribution pensions.
Notice on the part of Peab is twelve months with a reduction for any salary from a new employer combined with a severance pay of twelve months salary. 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 six other persons (until 31 October five 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 17,282 thousand (15,578). In addition, variable remuneration for 2018 amounted to SEK 5,412 thousand (7,105) and provisions for the LTI program amounted to SEK 3,014 thousand (3,762), which will be placed in pension savings in a financial instrument connected to the Peab share. Pension contributions paid for other senior officers amounted to SEK 6,999 thousand (6,288) during the year.
The pension policy for senior officers means that pension contributions are based on a contribution ladder within, alternatively, ITP or defined contributions entailing that the total contribution amounts to 35-47 percent of fixed salaries. Certain senior officers have an agreement with Peab that their employment ends the month they turn 62 years old. The other senior officers have an agreement that their employment ends the month they turn 65 years old.
Notice on the part of Peab is twelve months with a reduction for any salary from a new employer combined with severance pay consisting of six-twelve months salary. 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 LTI program was launched for 2015 – 2017 with annual provisions based on meeting the operating margin goal for the Group. The provisions’ size was related to the total dividends disbursed to shareholders for the year. The program was open to approximately 500 of the Group’s key employees. In order for an employee to receive their share of the result of the LTI program the employee had to have been working consistently for Peab from 2015 to 31 December 2017. In 2017 the cost of the LTI program amounted to SEK 83 million including social security.
A new LTI program was launched for 2018-2020 and will be annually reconciled with operating margin goals for the Group. The program is open to approximately 500 of the Group’s key employees. In order for an employee to receive their share of the result of the LTI program the employee has to still be working for Peab on 31 December 2020. For senior officers and the CEO the upper limit (including social security) is 40 percent of their fixed annual salary. For other positions the upper limit (including social security) is 15-35 percent of their fixed annual salary, depending on their position. The result of the LTI program will be placed in a pension savings connected to the Peab share. In 2018 the cost of the LTI program amounted to SEK 94 million including social security.
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 2018 Peab allocated SEK 80 million. This amount less payroll tax will be paid into the foundation in 2019. In 2017 Peab allocated SEK 73 million including payroll tax.
Senior officers and other employees with other variable remuneration are not entitled to benefits from the profit-sharing foundation.
