Peab strives to achieve competitive total remuneration that makes it possible to recruit and retain the right employees. To determine what competitive total remuneration is and to evaluate current levels, every year comparative studies are conducted of relevant industries and markets.
The CEO’s total remuneration is decided by the Board of Directors. Remuneration-related issues concerning other members of the management group are decided by the Remuneration Committee, and the Board of Directors is informed subsequently. For the whole organisation, Peab applies the principle that each manager’s superior shall always be informed about and approve the recruitment of and remuneration to employees. The elements of total remuneration consist of:
- fixed salary
- flexible salary
- Long-term incentive program and
- other remuneration and benefits
Our remuneration philosophy
- Competitive total remuneration
- Link to long-term reinvestment in Peab shares/fund
- Transparency and simplicity
The fixed salary is reviewed on an annual basis and forms the basis of calculation of the variable salary.
Most managers with responsibility for financial results also have a variable salary. The variable salary is based on annually defined individual targets, targets for the overall unit and the Group’s targets. This means that the annual variable salary has a clear link to the individual's work and performance, as well as to the Group’s financial results. The targets are primarily quantitative and are based on factors that support the company’s long-term strategy.