The duties of the Compensation Committee
At Ratos, structured work with remuneration principles has been ongoing for many years. The Compensation Committee has both an advisory function (follow-up and evaluation) and a preparatory function for decision matters prior to their examination and decision by the Ratos Board.
The following matters are handled by the Compensation Committee:
- The CEO’s terms of employment, and terms for management and employees directly subordinate to the CEO
- follow and evaluate variable remuneration programmes for company management
- matters of principle concerning pension agreements, severance pay, notice periods, bonus/earnings-related remuneration, fees, benefits, etc.
- prepare matters relating to the incentive systems for Ratos and the companies for decision by the board and/or the General Meeting
- the Board’s proposal to the Annual General Meeting on guidelines for remuneration to senior executives.
The work of the Compensation Committee in 2016
The Compensation Committee held eleven minuted meetings in 2016 and in between has been in regular contact. The Committee’s minutes have been kept by the Board’s secretary, attorney Ingrid Westin Wallinder, from June 2016 and previously by former CEO Susanna Campbell.
The Compensation Committee works in accordance with an adopted formal work plan. Normally, early in the autumn an examination is carried out to see whether there are any major remuneration-related issues of principle to prepare. If such issues exist they are processed ahead of a final proposal at the ordinary meeting in January.
In 2016, the Compensation Committee made a thorough evaluation of Ratos’s remuneration structures and incentive programme, which resulted in proposals from the committee to modify calculations and criteria for variable cash salary for 2016 and 2017, and to propose to the Annual General Meeting changes in the synthetic options programme but unchanged call options programme. Certain modifications in the remuneraiton guidelines are proposed ahead of the 2017 Annual General Meeting.
The Compensation Committee also prepares and processes guidelines for the structure of general salary development for the years ahead and conducts an annual review of Ratos's long-term incentive systems, of which Ratos’s Board of Directors then submit an account of no later than three weeks before the Annual General Meeting on the company’s website. Read more here.