Principles for the remuneration of senior officers

The group other senior officers is comprised of eight senior officers who are members of executive management. During the first half of 2012 this group consisted of seven persons. The principles for remuneration of senior officers were adopted by the AGM 2012.

Remuneration to the CEO and other senior officers consists of a fixed salary, eventual 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 pre-tax profit of the Peab Group.

Variable remuneration is decided upon each financial year.

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.

Notice on the part of Peab is a maximum of 24 months and senior officers are required to give a maximum of six months notice. If a severance pay is paid the total remuneration for salary during the period of notice and severance pay may not exceed 24 monthly wages.

Variable remuneration for the CEO and other senior officers is related to meeting profit targets for the Group. Variable remuneration for the financial year 2012 was maximized at SEK 2,880 thousand (2,800) for the CEO and a total of SEK 7,326 thousand (6,525) for the other senior officers.

Senior officers are required to give a maximum of six months notice. Notice on the part of Peab is a maximum of 24 months. If a severance pay is paid the total remuneration for salary during the period of notice and severance pay may not exceed 24 monthly wages.