• About Our Group
• Our Business
• Our Core Values
• Code of Conduct
• Organization
• Corporate Governance
  • Application of the Corp. Governance code
  • Annual General Meeting
  • Board of Directors and Auditors
  • Remunerations
    • Principles for Remuneration
    • Long-term incentive program
    • Remuneration of Group Management 2011
    • Remuneration to the Board of Directors
  • Accounting Principles
  • Internal Control
  • Risk Management
  • Policy for Stock Market Information
  • Articles of Association
• Corporate Responsibility
• History
• The World of Trelleborg

Principles for Remuneration

The following are the principles for remuneration of senior executives adopted by the Annual General Meeting:

• Trelleborg shall offer market-based terms of employment that enable the company to recruit, develop and retain senior executives.
• The remuneration structure shall comprise fixed and variable salary, pension and other remuneration, which together form the individual’s total remuneration package.
• Trelleborg continuously gathers and evaluates information on market-based remuneration levels for relevant industries and markets.
• Principles for remuneration may vary depending on local conditions.
• The remuneration structure shall be based on such factors as position, expertise, experience and performance.

Senior executives comprise the President and other members of Group Management. The principles are supplemented by a policy for benefits for senior executives as well as a global Remuneration Policy covering all managers and senior salaried employees.

In 2011, total remuneration of Group Man-agement amounted to sek 68,325,000 (65,841,000), excluding pension premiums, and sek 84,069,000 (79,061,000), including pension premiums.

Annual variable salary
The annual variable salary is based on the achieve-ment of predefined targets for a number of perfor-mance indicators. The 2011 targets pertained among other things to the Group’s profit before tax and the Group’s operating cash flow, both excluding the effect of structural changes, as approved by the Board of Directors. Annual variable salary does not constitute pensionable income and does not form the basis of vacation pay. In 2011, the President’s variable salary was a maximum of 65 percent of fixed salary. For other senior executives, variable salary was a maximum of 30-60 percent of fixed salary in 2011.

Other benefits
The President and other senior executives have the possibility of having a company car and medical expenses insurance.

Pension
The pension agreement is a defined-contribution scheme. For the President and other senior execu-tives, the premium can vary between 20 and 45 percent of the fixed salary. For the President, the premium is computed as 40 percent of the fixed salary. Pensionable age for the President is 65; however, both the company and the President have the right, without special motivation, to request early retirement from the age of 60, with a mutual six-month notice of termination. If the President enters early retirement, the employment agreement and pension agreement are rendered invalid as of that time. Some of the senior executives have agreements specifying mutual rights to request early retirement from the age of 60. In this case, compensation amounting to 60 percent of fixed annual salary is paid until the age of 65, after which the regular retirement pension payments become effective.

Severance pay
For the President, termination of employment by the company shall be subject to a period of notice of 24 months. The period of notice from the President is six months. During the period of notice, fixed salary is payable. Certain senior executives have extended notice of termination periods when initiated by the company, normally 12, 18 or 24 months, whereas the notice period is six months when initiated by the senior executive.

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