Remuneration to the President and CEO and Group Management is proposed by the Remuneration Committee and decided upon by the Board of Directors. Remuneration comprises fixed salary, variable salary in the form of short-term incentives based on annual performance targets, long-term incentive programs, and benefits such as pensions and insurance. The overall principles for compensation within Electrolux are tied strongly to the position held, individual as well as team performance, and competitive compensation in the country or region of employment.
Variable salary is paid according to performance. Variable salary for the President and CEO is determined by achievement of financial targets during the year. Variably salary for sector heads is determined by the achievement of both financial and non-financial targets.
Value created is the most important financial indicator. Group staff heads receive variable salary based on the value created for the Group as well as achievement of performance targets within their respective functions.
Electrolux long-term incentive programs include a performance-based share program and employee stock-option programs, which are designed to align management incentives with shareholder interests. In 2007, the AGM approved a performance-based long-term share program, the Electrolux Share Program 2007, which has the same parameters as the share programs for 2004-2006. The program is based on value created over a three-year period and includes 160 senior officers and key employees of the Electrolux Group.
Fore more information on remuneration see Remuneration guidelines to the left.
