The terms of the remuneration shall be formulated in ways that benefit the Group´s business strategy and long-term interests – including its lasting growth and profitability – and that contribute to long-term growth in shareholder value. The total remuneration package of senior executives is to be competitive with existing market levels and may consist of the following components: fixed cash remuneration, variable cash remuneration, pension benefits, and other benefits.
The CEO and the Group´s other senior executives, excluding the CEO of ICA Banken, are included in two variable remuneration programmes taking the form of a cash bonus, one of which runs for one year and the other for three years. The variable cash remuneration is to be linked to pre-determined and measurable criteria which may be financial or non-financial. The criteria are to be designed so as to promote the Group´s business strategy and long-term interests, including sustainability, by being clearly linked to business targets and/or the Group´s strategies.
The guidelines for remuneration and the remuneration report, which accounts for the compliance with the guidelines, are included in the documentation of the Company´s Annual General Meetings ›
Annual bonus programme
The annual bonus programme is cash-based and maximized at 25 percent of annual base salary and holiday supplement (50 percent for the CEO).
The bonus programme shall be based on financial performance targets on Group and/or unit level. Financial performance targets are decided by the Board of Directors. In addition to financial performance targets, outcome may also be based on non-financial performance targets linked to business targets and/or strategies at Group and/or unit level.
Long-term bonus programme
The long-term bonus programme is cash-based and maximized at 25 percent of annual base salary and holiday supplement (50 percent for the CEO). The targets of the bonus programme shall be based on both absolute and relative performance requirements. The performance requirements shall consist of financial targets, measured in terms of both absolute and relative performance, considered to be contributing to long-term growth in shareholder value. In addition, the performance requirements shall include targets linked to ICA Gruppen´s aspiration to lead the development towards a more sustainable and healthier society. Relative performance is measured by comparing the outcome of financial key performance indicators (KPIs) with the corresponding KPIs of a pre-determined benchmark group consisting of other companies conducting similar operations. The outcome shall be dependent on ICA Gruppen´s ranking in the benchmark group.
