Principles for the remuneration of senior officers

The group other senior officers is comprised of six senior officers who are members of executive management. The principles for remuneration of senior officers were adopted by the 2016 AGM.

Remuneration to the CEO and other senior officers consists of a fixed salary, any 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 result goals for pre-tax profit of the Peab Group. Variable remuneration is decided upon each financial year.

Variable remuneration for the financial year 2016 was maximized at SEK 3,240 thousand (2,772) for the CEO and a total of SEK 8,114 thousand (7,682) for the other senior officers.

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.

From time to time, senior officers may be offered to participate in a LTI program. This variable remuneration is based on the operative operating margin for the Group and the dividend level. For senior officers and the CEO the upper limit is 40 percent of their fixed annual salary. 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 2016 were maximized at SEK 2,160 thousand for the CEO and a total of SEK 5,410 thousand for the other senior officers.

Notice on the part of Peab is twelve months combined with severance pay consisting of twelve months salary. Notice on the part of senior officers is six months combined with severance pay consisting of six months salary.

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