| 2015/2016 | 2014/2015 | |||||
|---|---|---|---|---|---|---|
| Average number of employees | Men | Women | Total | Men | Women | Total |
| Sweden | ||||||
| Parent Company | 7 | 6 | 13 | 6 | 5 | 11 |
| Other companies | 688 | 255 | 943 | 643 | 213 | 856 |
| Denmark | 238 | 161 | 399 | 233 | 130 | 363 |
| Finland | 220 | 118 | 338 | 182 | 94 | 276 |
| Norway | 325 | 27 | 352 | 205 | 56 | 261 |
| Other countries | 273 | 68 | 341 | 380 | 77 | 457 |
| Total | 1,751 | 635 | 2,386 | 1,649 | 575 | 2,224 |
| Of which discontinued operations | 208 | 224 | 432 | 158 | 125 | 283 |
| 2015/2016 | 2014/2015 | |||||
| Salaries and remuneration | Senior management | of which profit-related remune- ration | Other employees | Senior management | of which profit-related remune- ration | Other employees |
| Sweden | ||||||
| Parent Company | 22 | 4 | 7 | 20 | 4 | 3 |
| Other companies | 60 | 6 | 404 | 52 | 7 | 370 |
| Denmark | 26 | 3 | 227 | 27 | 4 | 203 |
| Finland | 23 | 3 | 135 | 24 | 3 | 112 |
| Norway | 22 | 2 | 184 | 27 | 1 | 154 |
| Other countries | 13 | 2 | 69 | 13 | 2 | 59 |
| Total | 166 | 20 | 1,026 | 163 | 21 | 901 |
| Of which discontinued operations | 24 | 3 | 196 | 23 | 4 | 150 |
| Senior management is defined as Group management, Managing Directors and vice MD’s in Group subsidiaries. | ||||||
| Group | Parent Company | |||
|---|---|---|---|---|
| Salaries, remuneration and social security costs | 2015/2016 | 2014/2015 | 2015/2016 | 2014/2015 |
| Salaries and other remuneration | 1,193 | 1,065 | 30 | 23 |
| Contractually agreed pensions for senior management | 24 | 23 | 4 | 4 |
| Contractual pensions to others | 128 | 86 | 2 | 1 |
| Other social security costs | 197 | 206 | 10 | 9 |
| Total | 1,542 | 1,380 | 46 | 37 |
| Of which discontinued operations | 336 | 224 | - | - |
| At year-end, outstanding pension commitments to senior management totalled SEK 9 million (11) for the Group and SEK 2 million (2) for the Parent Company. Different accounting policies are applied to pension costs in the Parent Company and the Group (see Note 1 Accounting Policies). | ||||
| Group | Parent Company | |||
| Proportion of women | 2016-03-31 | 2015-03-31 | 2016-03-31 | 2015-03-31 |
| Board of Directors (not including alternates) | 4% | 4% | 29% | 17% |
| Other members of senior management | 16% | 18% | 17% | 17% |
The guidelines applied in the 2015/2016 financial year for remuneration to senior management correspond to those in the proposal for the coming year included in the administration report. The principle for remuneration to the Board of Directors, Chief Executive Officer (CEO) and Group management is that remuneration should be competitive. The nomination committee proposes Board fees to the Annual General Meeting (AGM). Board fees are paid based on a resolution of the AGM.
No separate fees are paid for committee work. For remuneration to the CEO, members of Group management and other members of senior management in the Group, the Board of Directors has appointed a remuneration committee consisting of the Chairman and Vice Chairman of the Board, with the CEO as the reporting member. A fixed salary, variable remuneration and conventional employment benefits are paid to the CEO, Group management and other members of senior management. In addition, pension benefits and incentive programmes apply, as described below. The remuneration committee adheres to the guidelines for remuneration to senior management approved by Addtech AB's AGM.
The 2015 AGM resolved to approve an incentive scheme for senior management and a selected number of senior executives of the Addtech Group who are directly able to have an impact on the Group’s financial performance. The scheme consists of call options for shares repurchased by Addtech, where each call option carries the right to acquire a repurchased Class B share. Members of the Board of Directors have not had the right to purchase call options, with the exception of the CEO.
The call options are freely transferable as financial instruments. In order to encourage participation in the scheme, a subsidy will be paid corresponding to the premium paid for each call option. This subsidy will be paid two years following the AGM, providing that the option holder’s employment with the Group has not been terminated and that the call options have not been disposed of prior to this point. Scheme expenses consist of the subsidy plus social security costs. The subsidy corresponds to the option premium that the Company receives on transferring the call options, for which reason the scheme will not involve any net charge to the Company’s equity.
Similar call option schemes for senior management and a selected number of senior executives in the Addtech Group were resolved by the AGMs from 2009 to 2014.
The allotment as resolved by the 2015 Annual General Meeting included 24 senior executives and a total of 350,000 call options, corresponding to 0.5 percent of the total number of shares and approximately 0.4 percent of the total number of votes in the Company. The allotment varied between 4,000 – 30,000 options per person. The Chief Executive Officer acquired 30,000 and the others in Group Management 150,000.
The options carry the right to the purchase of repurchased Class B shares between 17 September 2018 and 3 June 2019. The purchase price for shares on exercising options will correspond to 120 percent of the volume-weighted average of the price paid for the Company’s B shares on NASDAQ Stockholm between 31 August 2015 and 11 September 2015. The premium for the call options will correspond to the market value of the call options as per an external independent valuation, in accordance with the Black & Scholes model. The measuring period for calculating the option premium will be based on the volume-weighted average of the price paid for the Company’s Class B shares on NASDAQ Stockholm between 7 August 2015 and 11 September 2015.
The strike price for the call options was set at SEK 154.50. The market value of the call options was set at SEK 10.20. According to terms resolved by the Annual General Meeting, the scheme will be recalculated following the Group’s distribution of AddLife.
The costs of the scheme consist of the subsidy paid in 2017 including social security charges, which amount to approximately SEK 3.5 million after corporation tax. The subsidy corresponds to the option premium that the Company receives on transferring the call options. The personnel cost accrues the vesting period.
The allotment as resolved by the 2014 Annual General Meeting for 2014 included 25 people and a total of 350,000 call options, corresponding to approximately 0.5 percent of the total number of shares and approximately 0.4 percent of the total number of votes in the Company. The allotment varied between 3,900 – 30,000 options per person. The Chief Executive Officer acquired 30,000 and the others in Group Management 140,000.
The options carry the right to the purchase of repurchased Class B shares between 17 September 2017 and 1 June 2018. The purchase price for shares on exercising options will correspond to 120 percent of the volume-weighted average of the price paid for the Company’s B shares on NASDAQ Stockholm between 29 August 2014 and 11 September 2014. The premium for the call options will correspond to the market value of the call options as per an external independent valuation, in accordance with the Black & Scholes model. The measuring period for calculating the option premium will be based on the volume-weighted average of the price paid for the Company’s Class B shares on NASDAQ Stockholm between 5 August 2014 and 11 September 2014.
The strike price for the call options was set at SEK 116.70. The market value of the call options was set at SEK 6.40. According to terms resolved by the Annual General Meeting, the scheme will be recalculated following the Group’s distribution of AddLife.
The costs of the scheme consist of the subsidy paid in 2016 including social security charges, which amount to approximately SEK 3 million after corporation tax. The subsidy corresponds to the option premium that the Company receives on transferring the call options. The personnel cost accrues the vesting period.
The allotment as resolved by the 2013 Annual General Meeting for 2013 included 25 senior executives for a total of 180,000 call options, corresponding to approximately 0.8 percent of the total number of shares and approximately 0.6 percent of the total number of votes in the Company. The allotment varied between 4,000 – 26,550 options per person. The Chief Executive Officer acquired 26,550 and the others in Group Management 89,000.
The options carry the right to the purchase of repurchased Class B shares between 19 September 2016 and 2 June 2017. The purchase price for shares on exercising options will correspond to 120 percent of the volume-weighted average of the price paid for the Company’s B shares on NASDAQ Stockholm between 30 August and 12 September 2013. The premium for the call options will correspond to the market value of the call options as per an external independent valuation, in accordance with the Black & Scholes model. The measuring period for calculating the option premium will be based on the volume-weighted average of the price paid for the Company’s Class B shares on NASDAQ Stockholm between 6 August 2013 and 12 September 2013.
The strike price for the call options was set at SEK 106.13. The market value of the call options was set at SEK 5.73. According to terms resolved by the Annual General Meeting, the scheme will be recalculated following the Group’s distribution of AddLife, whereby each call option entitles the holder to 3.70 shares with an exercise price of SEK 85.50. In June 2016, 77,568 options were repurchased under current market conditions as of 13 June 2016, based on an independent external valuation using the Black & Scholes model.
The costs of the scheme consist of the subsidy paid in 2015 including social security charges, which totalled approximately SEK 3 million after corporation tax. The subsidy corresponds to the option premium that the Company receives on transferring the call options. The personnel cost accrues the vesting period.
The allotment as resolved by the 2012 Annual General Meeting for 2012 included 25 senior executives and a total of 200,000 call options, corresponding to 0.9 percent of the total number of shares and approximately 0.6 percent of the total number of votes in the Company. The allotment varied between 1,000 – 17,000 options per person. The Chief Executive Officer acquired 15,000 and the others in Group Management 97,000.
The options carry the right to the purchase of repurchased Class B shares between 14 September 2015 and 3 June 2016. The purchase price for shares on exercising options will correspond to 120 percent of the volume-weighted average of the price paid for the Company’s B shares on NASDAQ Stockholm between 31 August and 13 September 2012. The premium for the call options will correspond to the market value of the call options as per an external independent valuation, in accordance with the Black & Scholes model. The measuring period for calculating the option premium will be based on the volume-weighted average of the price paid for the Company’s Class B shares on NASDAQ Stockholm between 7 August 2013 and 13 September 2013.
The strike price for the call options was set at SEK 71.50. The market value of the call options was set at SEK 4.00. According to terms resolved by the Annual General Meeting, the scheme has been recalculated following the share split, whereby each option entitles the holder to 4.0 shares. Between 14 September and 31 December 2015, all 200,000 options were exercised, corresponding to 600,000 shares.
The costs of the scheme consist of the subsidy paid in 2014 including social security charges, which totalled approximately SEK 2 million after corporation tax. The subsidy corresponds to the option premium that the Company receives on transferring the call options. The personnel cost accrues the vesting period.
The Board fees of SEK 1,880 thousand (1,630) set by the AGM are distributed, as per the AGM's decision, among those Board Directors who are not employed by the Parent Company.
Johan Sjö, Parent Company CEO, received a fixed salary of SEK 4,196 thousand (4,030) and SEK 2,097 thousand (1,406) in variable pay. Variable remuneration includes SEK 271 thousand regarding the year’s cost for a subsidy for participation in the Group’s incentive programme. Taxable benefits totalling SEK 92 thousand (222) are additional. From age 65, the CEO is covered by a defined contribution pension, the size of which depends on the outcome of pension insurance agreements. During 2015/2016, a total of SEK 1,350 thousand (1,251) in pension premiums, determined annually by the remuneration committee, were paid for the CEO. Variable salary is not pensionable income.
Variable remuneration based on Group earnings may be payable in an amount up to 30 percent of fixed salary. In addition, a further premium of 20 percent may be payable of the variable remuneration received used in acquisition of shares in Addtech AB.
The period of notice is of 12 months when the Company terminates the employment contract and six months when the CEO does so. In the case of termination on the initiative of the Company, the CEO is entitled to a severance payment equivalent to one year's salary in addition to salary during the period of notice. No severance package is payable if the employee terminates the employment contract.
Other members of Group management were paid a total of SEK 10,769 thousand (8,915) in fixed salaries and SEK 3,205 thousand (3,684) in variable remuneration. Variable remuneration includes SEK 572 thousand (1,384) regarding the year’s cost for a subsidy for participation in the Group’s incentive programme. This variable remuneration was expensed during the 2015/2016 financial year and was paid during 2016/2017. Taxable benefits totalling SEK 570 thousand (620) are additional. Persons in Group management are covered from age 65 by pension entitlements based on individual agreements. Existing pension schemes consist of defined contribution schemes, in which the pension amount depends on the outcome of pension insurance agreements, as well as defined benefit schemes.
The cost of the defined benefit pensions and the defined contribution schemes is basically equivalent to the ITP plan (supplementary pension scheme for salaried employees).During 2015/2016, a total of SEK 2,934 thousand (3,176) in pension premiums was paid for the group 'Other members of Group management'.
Variable remuneration based on Group earnings may be payable in an amount up to 30 percent of fixed salary. In addition, a further premium of 20 percent may be payable of the variable remuneration received used in acquisition of shares in Addtech AB.
The period of notice is 12 months when the Company terminates the employment contract and six months when the employee does so. Severance pay is payable upon termination of employment equivalent to no more than one year's salary. No severance package is payable if the employee terminates the employment contract.
| Remuneration and other benefits 2015/2016 | Basic salary/ Board fees | Variable remuneration 1) | Other benefits | Pension costs | Total |
|---|---|---|---|---|---|
| Chairman of the Board | 0.5 | – | – | – | 0.5 |
| Other members of the Board | 1.4 | – | – | – | 1.4 |
| Chief Executive Officer | 4.2 | 2.1 | 0.1 | 1.4 | 7.8 |
| Other members of Group management 2) | 10.8 | 3.2 | 0.6 | 2.9 | 17.5 |
| Total | 16.9 | 5.3 | 0.7 | 4.3 | 27.2 |
| 1) Including remuneration to group management participating in incentive programmes. | |||||
| 2) At the beginning of the year, other members of Group Management consisted of six people, including one woman and five men. At the end of the year, other members of Group Management consisted of five people, including one woman and four men. | |||||
| Remuneration and other benefits 2014/2015 | Basic salary/ Board fees | Variable remuneration 1) | Other benefits | Pension costs | Total |
| Chairman of the Board | 0.5 | – | – | – | 0.5 |
| Other members of the Board | 1.1 | – | – | – | 1.1 |
| Chief Executive Officer | 4.0 | 1.4 | 0.2 | 1.3 | 6.9 |
| Other members of Group management 2) | 8.9 | 3.7 | 0.6 | 3.2 | 16.4 |
| Total | 14.5 | 5.1 | 0.8 | 4.5 | 24.9 |
| 1) Including remuneration to group management participating in incentive programmes. | |||||
| 2) During the year, other members of Group Management consisted of five people, including one woman and four men. | |||||
| Board fees, SEK ’000s | 2015/2016 | 2014/2015 | |||
| Name | Position | Fee | Fee | ||
| Anders Börjesson | Chairman of the Board | 500 | 500 | ||
| Tom Hedelius | Vice Chairman of the Board | 380 | 380 | ||
| Eva Elmstedt | Director | 250 | 250 | ||
| Ulf Mattsson | Director | 250 | 250 | ||
| Johan Sjö | Director | – | – | ||
| Lars Spongberg | Director | 250 | 250 | ||
| Malin Nordesjö | Director | 250 | – | ||
| Total | 1,880 | 1,630 | |||