The group senior officers is comprised of eight senior officers who are members of executive management. The principles for remuneration to senior officers were adopted by the 2019 AGM.
senior officers were adopted by the 2019 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 is primarily based on the Peab Group’s profitability and, from time to time, essential Group goals. Short-term incentives are decided upon for each financial year.
Short-term incentives for the financial year 2019 were maximized at SEK 4,450 thousand (4,320) for the CEO and a total of SEK 11,586 thousand (9,442) 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 it is 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 (including 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 2019 were maximized at SEK 2,966 thousand (including social security) for the CEO and a total of SEK 8,155 thousand (including 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.