Annual report 2013
The Annual General Meeting decides on the remuneration of the Board of Directors and the auditor. At the Annual General Meeting on 22 March 2013, a decision was taken to confirm the attendance allowance for Board meetings as EUR 600 per meeting and to set the following annual fees for the term beginning on 22 March 2013: EUR 20,000 for the Chairman; EUR 11,000 for the Deputy Chairman; and EUR 8,000 for each of the members.
The fees paid to members of the Board of Directors for the year 2013 came to a total of EUR 116,200.
It has been decided that the fee for the auditors will be paid to invoice.
The company’s Board of Directors decides on the pay of the CEO and members of the Management Group and on the principles and disbursement of their performance bonuses. Group employees do not receive additional compensation for serving as Board members or the CEO of a Group company.
The salaries and fees of the CEO and Deputy CEOs, including benefits in kind, came to EUR 648,325.04. The Deputy CEO was changed on 1 September 2013.
The retirement age for the members of the Management Group is 63 years. The 'old' Management Group members are entitled to a benefit-based pension amounting to 60 per cent of pensionable earnings. New members of the Management Group come under a contribution-based pension system where an insurance premium corresponding to two months’ taxable income is paid annually into a group pension insurance plan.
The period of notice for terminating the CEO’s employment relationship is six months. If the company dismisses the CEO before the retirement age, the CEO is entitled to severance pay equal to his six months’ total pay in addition to his pay for the period of notice.
Members of the Management Group are included in the annual bonus system, which is based on a balanced score card. Members of the Management Group have also been included in a long-term incentive plan since the beginning of 2010. The incentive plan is based on the Group’s performance and is divided into three-year periods. The second period ended in 2013.