Note 9 Employees, personnel costs and remuneration to senior officers
Costs for remuneration to employees
| Group, MSEK | 2023 | 2022 | |
| Koncernen, Mkr | 2023 | 2022 | |
| Salaries and remuneration etc. | Löner och ersättningar m.m. | 8,578 | 8,510 |
| Pension costs, defined contribution plans | Pensionskostnader, avgiftsbaserade planer | 939 | 989 |
| Social security | Sociala avgifter | 2,206 | 2,148 |
| Total | Summa | 11,723 | 11,647 |
Average number of employees
| No. of employees 2023 | Of which were women percent 2023 | No. of employees 2022 | Of which were women percent 2022 | ||
| Antal anställda 2023 | Varav kvinnor procent 2023 | Antal anställda 2022 | Varav kvinnor procent 2022 | ||
| Parent company | Moderbolaget | ||||
| Sweden | Sverige | 151 | 54 | 148 | 53 |
| Subsidaries | Dotterföretag | ||||
| Sweden | Sverige | 10,046 | 14 | 10,148 | 14 |
| Norway | Norge | 1,674 | 11 | 1,718 | 12 |
| Finland | Finland | 1,633 | 14 | 1,910 | 15 |
| Denmark | Danmark | 301 | 8 | 284 | 7 |
| Poland | Polen | 3 | 100 | 3 | 100 |
| Total in subsidaries | Totalt i dotterföretag | 13,657 | 14 | 14,063 | 14 |
| Group | Koncernen | 13,808 | 14 | 14,211 | 14 |
Gender distribution in boards and other senior officers
| Percentage of women 2023 | Percentage of women 2022 | ||
| Andel kvinnor procent 2023 | Andel kvinnor procent 2022 | ||
| Parent company | Moderbolaget | ||
| The Board of Directors | Styrelsen | 45 | 45 |
| Other senior officers 1) | Övriga ledande befattningshavare 1) | 20 | 20 |
| Group | Koncernen | ||
| Boards 2) | Styrelser 2) | 43 | 43 |
| Other senior officers 3) | Övriga ledande befattningshavare 3) | 16 | 14 |
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‚ MSEK | Board of Directors and senior officers (16 persons) 2023 | Board of Directors and senior officers (16 persons) 2022 | |
| Koncernen, Mkr | Styrelse och ledande befattningshavare (16 personer) 2023 | Styrelse och ledande befattningshavare (16 personer) 2022 | |
| Salaries and other remuneration | Löner och andra ersättningar | 41 | 39 |
| – of which variable remuneration | – varav rörlig ersättning | 1 | 1 |
| Pension costs | Pensionskostnader | 20 | 17 |
| – of which pension costs for variable remuneration | – varav pensionskostnader från rörlig ersättning | 5 | 3 |
Salaries and other remuneration divided among senior officers and other employees as well as social security costs
| Parent company 2023‚ MSEK | Board of Directors and senior officers (13 persons) 1) | Other employees | Total | |
| Moderbolaget 2023. Mkr | Styrelse och ledande befattningshavare (13 personer) 1) | Övriga anställda | Totalt | |
| Salaries and other remuneration | Löner och andra ersättningar | 29 | 123 | 152 |
| – of which variable remuneration | – varav rörlig ersättning | 0 | 1 | 1 |
| Social security costs | Sociala kostnader | 30 | 69 | 99 |
| – of which pension costs | – varav pensionskostnader | 11 | 23 | 34 |
| – of which pension costs for variable remuneration | – varav pensionskostnader från rörlig ersättning | 5 | – | 5 |
1) The group senior officers refers to parts of executive management. During 2023 the group consisted of five persons in the parent company.
| Parent company 2022‚ MSEK | Board of Directors and senior officers (13 persons) 1) | Other employees | Total | |
| Moderbolaget 2022. Mkr | Styrelse och ledande befattningshavare (13 personer) 1) | Övriga anställda | Totalt | |
| Salaries and other remuneration | Löner och andra ersättningar | 29 | 113 | 142 |
| – of which variable remuneration | – varav rörlig ersättning | 0 | 4 | 4 |
| Social security costs | Sociala kostnader | 24 | 65 | 89 |
| – of which pension costs | – varav pensionskostnader | 11 | 23 | 34 |
| – of which pension costs for variable remuneration | – varav pensionskostnader från rörlig ersättning | 2 | 5 | 7 |
1) The group senior officers refers to parts of executive management. During 2022 the group consisted of five persons in the parent company.
Salaries and other remuneration for senior officers in 2023
| Thousands, SEK | Basic pay/Board remuneration | Variable remuneration | 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, Anders Runevad | Styrelsens ordförande, Anders Runevad | 1,360 | 1,360 | ||||
| Other members of the Board | Övrig styrelse | ||||||
| Karl-Axel Granlund | Karl-Axel Granlund | 760 | 760 | ||||
| Lars Sköld | Lars Sköld | 765 | 765 | ||||
| Fredrik Paulsson | Fredrik Paulsson | 760 | 760 | ||||
| Kerstin Lindell | Kerstin Lindell | 680 | 680 | ||||
| Liselott Kilaas | Liselott Kilaas | 680 | 680 | ||||
| Malin Persson | Malin Persson | 600 | 600 | ||||
| Magdalena Gerger | Magdalena Gerger | 680 | 680 | ||||
| Board of Directors fees, remuneration from the parent company | Styrelsearvode, ersättning från moderbolaget | 6,285 | 6,285 | ||||
| CEO, Jesper Göransson | Verkställande direktör, Jesper Göransson | 9,041 | 1,808 | – | 269 | 4,931 2) | 16,049 |
| Other senior officers, remuneration from the parent company | Andra ledande befattningshavare, ersättning från moderbolaget | 13,485 | 2,697 | – | 798 | 6,444 3) | 23,424 |
| Other senior officers, remuneration from subsidiaries | Andra ledande befattningshavare, ersättning från dotterföretag | 9,598 | 2,032 | – | 786 | 3,588 4) | 16,004 |
| Total | Summa | 38,409 | 6,537 | – | 1,853 | 14,963 | 61,762 |
| Remuneration from the parent company | Ersättning från moderbolaget | 28,811 | 4,505 | – | 1,067 | 11,375 | 45,758 |
| Remuneration from subsidiaries | Ersättning från dotterföretag | 9,598 | 2,032 | – | 786 | 3,588 | 16,004 |
1) For more information see Long-term incentive program (LTI program).
2) Includes fees for endowment insurance of SEK 572 thousand.
3) Includes fees for endowment insurance of SEK 445 thousand.
4) Includes fees for endowment insurance of SEK 129 thousand.
Salaries and other remuneration for senior officers in 2022
| Thousands, SEK | Basic pay/Board remuneration | Variable remuneration | 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, Anders Runevad | Styrelsens ordförande, Anders Runevad | 1,360 | 1,360 | ||||
| Other members of the Board | Övrig styrelse | ||||||
| Karl-Axel Granlund | Karl-Axel Granlund | 760 | 760 | ||||
| Lars Sköld | Lars Sköld | 765 | 765 | ||||
| Fredrik Paulsson | Fredrik Paulsson | 760 | 760 | ||||
| Kerstin Lindell | Kerstin Lindell | 680 | 680 | ||||
| Liselott Kilaas | Liselott Kilaas | 680 | 680 | ||||
| Malin Persson | Malin Persson | 600 | 600 | ||||
| Magdalena Gerger | Magdalena Gerger | 680 | 680 | ||||
| Board of Directors fees, remuneration from the parent company | Styrelsearvode, ersättning från moderbolaget | 6,285 | 6,285 | ||||
| CEO, Jesper Göransson | Verkställande direktör, Jesper Göransson | 8,760 | 876 | – | 558 | 4,691 2) | 14,885 |
| Other senior officers, remuneration from the parent company | Andra ledande befattningshavare, ersättning från moderbolaget | 13,008 | 1,300 | – | 989 | 6,029 3) | 21,326 |
| Other senior officers, remuneration from subsidiaries | Andra ledande befattningshavare, ersättning från dotterföretag | 9,000 | 900 | – | 707 | 3,445 4) | 14,052 |
| Total | Summa | 37,053 | 3,076 | – | 2,254 | 14,165 | 56,548 |
| Remuneration from the parent company | Ersättning från moderbolaget | 28,053 | 2,176 | – | 1,547 | 10,720 | 42,496 |
| Remuneration from subsidiaries | Ersättning från dotterföretag | 9,000 | 900 | – | 707 | 3,445 | 14,052 |
1) For more information see Long-term incentive program (LTI program).
2) Includes fees for endowment insurance of SEK 471 thousand.
3) Includes fees for endowment insurance of SEK 349 thousand.
4) Includes fees for endowment insurance of SEK 153 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 2022 and 2023 the group senior officers consisted of eight persons, of which five were in the parent company.
The Board of Directors
The 2023 AGM decided on a remuneration to members of the Board of SEK 6,285 thousand (6,285), of which SEK 5,400 thousand (5,400) refers to Board work and SEK 885 thousand (885) refers to committee work. Compensation for work as Chairman of the Board was SEK 1,200 thousand (1,200) and SEK 4,200 thousand (4,200) was divided among the other Board members. Compensation for work on the Remuneration Committee was SEK 240 thousand (240), SEK 240 thousand (240) for work on the Finance Committee and SEK 405 thousand (405) 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 2023 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 targets. In 2023 Group targets were linked to Peab’s external financial and non-financial targets. Short-term incentives are determined for each financial year. Short-term incentives for the financial year 2023 were maximized at SEK 5,424 thousand (5,256) for the CEO and a total of SEK 14,185 thousand (13,205) 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 they are 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 (excluding 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 2023 were maximized at SEK 3,616 thousand (excluding social security) for the CEO and a total of SEK 9,456 thousand (excluding 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.
Chief Executive Officer
The CEO of Peab AB, Jesper Göransson, has in 2023 received a salary and other remuneration, including benefits, totaling SEK 9,310 thousand (9,318). In addition, he has received short-term incentives for 2023 of SEK 1,808 thousand (876). No provisions were made for an LTI program for the years 2022 and 2023. Pension contributions including fees for endowment insurance for the year were SEK 4,931 thousand (4,691).
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 24,667 thousand (23,704). In addition, short-term incentives for 2023 were SEK 4,729 thousand (2,200) which were placed in pension savings in endowment insurance connected to the Peab share, alternatively paid in cash. No provisions were made for an LTI program for the years 2022 and 2023. Pension contributions including fees for endowment insurance during the year amounted to SEK 10,032 thousand (9,474).
The pension policy for senior officers means that pension contributions are defined contributions, entailing that the total contribution was 35-47 percent of basic pay. 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. There was an LTI program for the business plan period 2021-2023 with annual reconciliations with operating margin targets for the Group. The program was 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 had to still be working for Peab on December 31, 2023. For senior officers and the CEO the upper limit (excluding social security) was 40 percent of their basic pay. For other positions the upper limit (excluding 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 alternatively paid as cash salary. No provisions were made for an LTI program for the years 2022 and 2023.
For 2024 the Board of Directors proposes that the AGM decide on a long-term incentive program for members of executive management, other senior officers and key personnel in the Peab Group (LTI 2024). The purpose of the LTI 2024 is to link employees’ remuneration to future profit and value development and thereby put a premium on shareholders and relevant employees. A long-term incentive program is also expected to facilitate recruiting and keeping key personnel. The LTI 2024 is proposed to comprise around 600 participants.
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 shareholders can withdraw their share in the foundation. Under the foundation’s investment policy, its assets must be mainly invested in shares in Peab. No provisions were made for the profit-sharing foundation for the years 2022 and 2023.
Senior officers and other employees with other short-term incentives are not entitled to benefits from the profit-sharing foundation.