Note 10 Employees, personnel costs and remuneration to senior officers

Costs for remuneration to employees

Group, MSEK 2020 2019
Koncernen, Mkr 2020 2019
Salaries and remuneration etc. Löner och ersättningar m.m. 8,161 7,277
Pension costs, defined contribution plans Pensionskostnader, avgiftsbaserade planer 939 864
Social security 1) Sociala avgifter 1) 2,161 2,157
Total Summa 11,261 10,298
1)  Social security fees during 2020 have been reduced by SEK 27 million due to a reduction in employer contributions due to the corona pandemic.

Average number of employees

No. of employees 2020 Of which were men 2020 percent No. of employees 2019 Of which were men 2019 percent
Antal anställda 2020 Varav män 2020 procent Antal anställda 2019 Varav män 2019 procent
Parent company Moderbolaget
Sweden Sverige 168 48 161 44
Subsidaries Dotterföretag
Sweden Sverige 11,080 87 11,736 88
Norway Norge 1,761 89 1,622 90
Finland Finland 1,947 86 787 82
Denmark Danmark 208 92 – –
Poland Polen 2 50 3 67
Total in subsidaries Totalt i dotterföretag 14,998 87 14,148 88
Group Koncernen 15,166 87 14,309 87

Gender distribution in boards and other senior officers

2020 Percentage of women 2019 Percentage of women
2020 Andel kvinnor procent 2019 Andel kvinnor procent
Parent company Moderbolaget
The Board of Directors Styrelsen 25 27
Other senior officers 1) Övriga ledande befattningshavare 1) 25 25
Group  Koncernen 
Boards 2) Styrelser 2) 27 26
Other senior officers 3) Övriga ledande befattningshavare 3) 19 17
1) Refers to Executive management.
2) Refers to the Board of Directors in the parent company and boards in subsidiaries.
3) Other senior officers in the Group refers to Executive management along with business area management.

Salaries and other remuneration as well as pension costs for senior officers

Group 2020‚ MSEK Board of Directors and senior officers (17 persons) 1)
Koncernen 2020. Mkr Styrelse och ledande befattningshavare (17 personer) 1)
Salaries and other remuneration Löner och andra ersättningar 37
– of which variable remuneration – varav rörlig ersättning 1
Pension costs Pensionskostnader 25
– of which pension costs for variable remuneration – varav pensionskostnader från rörlig ersättning 12
1) The group senior officers refers to executive management. During 2020 the group consisted of eight persons, four of which were in the parent company during the period January-October 2020. During the period November-December 2020 the group consisted of five persons in the parent company and three persons in other subsidiaries.
Group 2019‚ MSEK Board of Directors and senior officers (16 persons) 1)
Koncernen 2019. Mkr Styrelse och ledande befattningshavare (16 personer) 1)
Salaries and other remuneration Löner och andra ersättningar 34
– of which variable remuneration – varav rörlig ersättning –
Pension costs Pensionskostnader 30
– of which pension costs for variable remuneration – varav pensionskostnader från rörlig ersättning 17
1) The group senior officers refers to executive management. During 2019 the group consisted of eight persons, four of which were in the parent company.

Salaries and other remuneration divided among senior officers and other employees as well as social security costs

Parent company 2020‚ MSEK Board of Directors and senior officers (14 persons) 1) Other employees Total
Moderbolaget 2020. Mkr Styrelse och ledande befattningshavare (14 personer) 1) Övriga anställda Totalt
Salaries and other remuneration Löner och andra ersättningar 24 125 149
– of which variable remuneration – varav rörlig ersättning – 2 2
Social security costs Sociala kostnader 28 80 108
– of which pension costs – varav pensionskostnader 9 25 34
– of which pension costs for variable remuneration – varav pensionskostnader från rörlig ersättning 8 3 11
1) The group senior officers refers to executive management. During 2020 the group consisted of eight persons, four of which were in the parent company during the period January-October 2020. During the period November-December 2020 the group consisted of five persons in the parent company and three persons in other subsidiaries.
Parent company 2019‚ MSEK Board of Directors and senior officers (12 persons) 1) Other employees Total
Moderbolaget 2019. Mkr Styrelse och ledande befattningshavare (12 personer) 1) Övriga anställda Totalt
Salaries and other remuneration Löner och andra ersättningar 22 108 130
– of which variable remuneration – varav rörlig ersättning – 2 2
Social security costs Sociala kostnader 30 68 98
– of which pension costs – varav pensionskostnader 8 23 31
– of which pension costs for variable remuneration – varav pensionskostnader från rörlig ersättning 10 4 14
1) The group senior officers refers to executive management. During 2019 the group consisted of eight persons, four of which were in the parent company.

Salaries and other remuneration for senior officers in 2020

Thousands, SEK Basic pay/Board remuneration Variable remuneration (STI) LTI-program 1) Other
benefits/
remunerations		 Pension costs Total
Kkr Grundlön/ styrelsearvode Rörlig ersättning LTI-program 1) Övriga
förmåner/
ersättningar		 Pensions-kostnad Summa
Chairman of the Board, Göran Grosskopf Styrelsens ordförande, Göran Grosskopf 1,125 1,125
Vice Chairman of the Board, Mats Paulsson Styrelsens vice ordförande, Mats Paulsson 525 525
Other members of the Board Övrig styrelse
Karl-Axel Granlund Karl-Axel Granlund 600 600
Lars Sköld Lars Sköld 600 600
Fredrik Paulsson Fredrik Paulsson 525 525
Kerstin Lindell Kerstin Lindell 525 525
Liselott Kilaas Liselott Kilaas 525 525
Malin Persson Malin Persson 450 450
Anders Runevad Anders Runevad 450 450
Board of Directors fees, remuneration from the parent company Styrelsearvode, ersättning från moderbolaget 5,325 5,325
CEO, Jesper Göransson Verkställande direktör, Jesper Göransson 7,944 2,320 1,205 498 4,158 2) 16,125
Other senior officers, remuneration from the parent company Andra ledande befattningshavare, ersättning från moderbolaget 10,305 2,609 1,513 720 4,738 3) 19,885
Other senior officers, remuneration from subsidiaries Andra ledande befattningshavare, ersättning från dotterföretag 10,930 3,331 1,750 676 4,525 4) 21,212
Total Summa 34,504 8,260 4,468 1,894 13,421 62,547
Remuneration from the parent company Ersättning från moderbolaget 23,574 4,929 2,718 1,218 8,896 41,335
Remuneration from subsidiaries Ersättning från dotterföretag 10,930 3,331 1,750 676 4,525 21,212
1) For more information see Long-term incentive program (LTI program).
2) Includes fees for endowment insurance of SEK 338 thousand.
3) Includes fees for endowment insurance of SEK 228 thousand.
4)  Includes fees for endowment insurance of SEK 300 thousand.

Salaries and other remuneration for senior officers in 2019

Thousands, SEK Basic pay/Board remuneration Variable remuneration (STI) LTI-program 1) Other
benefits/
remunerations		 Pension costs Total
Kkr Grundlön/ styrelsearvode Rörlig ersättning LTI-program 1) Övriga
förmåner/
ersättningar		 Pensions-kostnad Summa
Chairman of the Board, Göran Grosskopf Styrelsens ordförande, Göran Grosskopf 1,125 1,125
Vice Chairman of the Board, Mats Paulsson Styrelsens vice ordförande, Mats Paulsson 525 525
Other members of the Board Övrig styrelse
Karl-Axel Granlund Karl-Axel Granlund 600 600
Lars Sköld Lars Sköld 600 600
Fredrik Paulsson Fredrik Paulsson 525 525
Kerstin Lindell Kerstin Lindell 525 525
Liselott Kilaas Liselott Kilaas 525 525
Malin Persson Malin Persson 450 450
Board of Directors fees, remuneration from the parent company Styrelsearvode, ersättning från moderbolaget 4,875 4,875
CEO, Jesper Göransson Verkställande direktör, Jesper Göransson 7,416 3,110 1,754 714 3,829 2) 16,823
Other senior officers, remuneration from the parent company Andra ledande befattningshavare, ersättning från moderbolaget 9,264 3,433 1,976 565 4,237 3) 19,475
Other senior officers, remuneration from subsidiaries Andra ledande befattningshavare, ersättning från dotterföretag 11,124 4,666 2,435 681 4,571 4) 23,477
Total Summa 32,679 11,209 6,165 1,960 12,637 64,650
Remuneration from the parent company Ersättning från moderbolaget 21,555 6,543 3,730 1,279 8,066 41,173
Remuneration from subsidiaries Ersättning från dotterföretag 11,124 4,666 2,435 681 4,571 23,477
1) For more information see Long-term incentive program (LTI program).
2) Includes fees for endowment insurance of SEK 264 thousand.
3) Includes fees for endowment insurance of SEK 98 thousand.
4)  Includes fees for endowment insurance of SEK 117 thousand.

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 31 for additional information about pensions.

In 2020 the group senior officers consisted of eight persons, of which four officers were in the parent company during the period January-October 2020. On November 1, 2020 one person left executive management and another person became part of it. During November-December the group was comprised of eight persons, of which five were in the parent company.

The Board of Directors

The 2020 AGM decided that on a remuneration to members of the Board of SEK 5,325 thousand (4,875), of which SEK 4,500 thousand (4,050) refers to Board work and SEK 825 thousand (825) refers to committee work. Compensation to the Chairman of the Board was SEK 900 thousand (900) and SEK 3,600 thousand (3,150) was divided among the other Board members. Compensation for work on the Remuneration Committee was SEK 225 thousand (225), SEK 225 thousand (225) for work on the Finance Committee and SEK 375 thousand (375) 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 or for other members of the Board.

Principles for remuneration to senior officers

The group senior officers is comprised of the eight senior officers who are members of executive management. The principles for remuneration to senior officers were adopted by the 2020 AGM.

Remuneration to the CEO and other senior officers consists of basic pay, any short-term incentives, 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 short-term incentives. Short-term incentives may not exceed 60 percent of their basic pay and are primarily based on the Peab Group’s profitability and, from time to time, important Group goals. Short-term incentives are determined for each financial year. Short-term incentives for the financial year 2020 were maximized at SEK 4,766 thousand (4,450) for the CEO and a total of SEK 12,209 thousand (11,586) for the other senior officers.

Short-term incentives are 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 annual basic pay. 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 2020 were maximized at SEK 3,177 thousand (including social security) for the CEO and a total of SEK 8,558 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 2020 received a salary and other remuneration, including benefits, totaling SEK 8,442 thousand (8,130). In addition, he has received short-term incentives for 2020 of SEK 2,320 thousand (3,110) and a provision for the LTI program of SEK 1,205 thousand (1,754) 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 4,158 thousand (3,829).

The CEO has the right to retire from the age of 62. Annual pension contributions of 47 percent of basic pay 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 seven 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 22,631 thousand (21,634). In addition, short-term incentives for 2020 amounted to SEK 5,940 thousand (8,099) and provisions for the LTI program amounted to SEK 3,263 thousand (4,411), which was placed in pension savings in a financial instrument connected to the Peab share. Pension contributions paid for other senior officers amounted to SEK 9,263 thousand (8,808) 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 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 2018-2020 and was annually reconciled with operating margin goals for the Group. 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 still be working for Peab on December 31, 2020. For senior officers and the CEO the upper limit (including social security) was 40 percent of their annual basic pay. For other positions the upper limit (including social security) was 15-35 percent of their annual basic pay, depending on their position. The outcome of the LTI program was placed in a pension savings connected to the Peab share. In 2020 the cost of the LTI program amounted to SEK 51 million (63) including social security.

A new LTI program has been launched for the business plan period 2021-2023 and it will be annually reconciled with operating margin goals for the Group. The program is open to approximately 600 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 December 31, 2023. For senior officers and the CEO the upper limit (excluding social security) is 40 percent of their annual basic pay. For other positions the upper limit (excluding social security) is 15-35 percent of their annual basic pay, depending on their position. The outcome of the LTI program is placed in a pension savings connected to the Peab share or alternatively paid as salary.

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 are 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 2020 Peab allocated SEK 55 million. This amount less payroll tax will be paid into the foundation in 2021. In 2019 Peab allocated SEK 60 million including payroll tax.

Senior officers and other employees with other short-term incentives are not entitled to benefits from the profit-sharing foundation.