Page 92 - Loomis Annual Report 2017

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Notes – Group
Loomis Annual Report 2017
Forts. NOTE 11
notice period equivalent to a maximum of 100 percent of xed salary for a period not exceeding 12 months. If the executive resigns, the notice period is a maximum of six months.
Other bene ts, such as company car, supplementary health insurance or access to the occupational health service may
be provided, if this is considered customary in the market, for senior executives holding equivalent positions in the job market where the member of Group Management is active. However, the total value of these bene ts must only constitute a small portion of the total remuneration package.
Remuneration and employment terms for the President and CEO
Remuneration for the President and CEO is outlined in the table on page 89. Patrik Andersson is entitled to a choice of de ned contribution pension plans equivalent to 30 percent of xed salary. Loomis has no other commitments to Patrik Anders-
son with respect to pension or sick pay. If notice of termina- tion is given by the Company, Patrik Andersson is entitled to a period of notice of 12 months and severance pay equivalent to 12 monthly salaries, provided that the termination is not due to a gross breach of contract. If Patrik Andersson resigns, the period of notice is six months. Patrik Andersson is bound by a non-competition clause during the notice period.
Other information on other members of Group Management
Six of the Swedish members of Group Management are enti- tled to pension bene ts in accordance with the ITP plan, which includes alternative ITP for the portion of pensionable sal-
ary exceeding 7.5 base amounts. One of these members of Group Management is covered by ITP 2 and is therefore entitled to a de ned contribution pension plan where the contribution amounts to 15 percent of the pensionable xed salary exceed- ing 20 base amounts. While Swedish Group Management mem- ber Lars Blecko is posted in the USA a pension provision is being made in line with the US subsidiary’s pension plans and a salary supplement is being recognized as a pension cost. One foreign member of Group Management is entitled to a pension provision according to the local subsidiary’s pension plans for salaried employees and one foreign member of Group Manage- ment has no pension plan entitlement.
The period of notice for other members of Group Manage- ment varies between zero and twelve months if notice is given by Loomis and between three and six months if the member
resigns. Six of the members of Group Management are enti- tled to receive severance pay if notice is given by the Company equivalent to between 12 and (in one case) 42 monthly salaries, according to local laws. As a general rule, severance pay is not payable if the member terminates his/her employment, unless the termination is due to a gross breach of contract on the part of Loomis.
Six of the other members of Group Management are bound by a non-competition clause for one or two years after termina- tion of employment. If the member resigns, in lieu of receiving severance pay, the individual will be compensated for the differ- ence between the xed monthly salary at the time of termination and the lower level of income subsequently earned by the indi- vidual. Compensation in the case of resignation is only payable if the member complies with the non-competition clause.
Incentive Scheme
On May 4, 2017, Loomis’ Annual General Meeting resolved to introduce an incentive scheme (Incentive Scheme 2017), equiv- alent to the scheme adopted by the 2016 Annual General Meet- ing. Similar to the existing incentive scheme, the proposed incen- tive scheme involves two thirds of the variable remuneration being paid out in cash after the year it was earned. The remain- ing one third will be in the form of shares in Loomis AB, which will be allotted to the employees no later than June 30, 2019. The allotment of shares is contingent upon the employee still being employed by the Loomis Group on the last day of February 2019. In order for the allotment of shares in Loomis AB to be made, the 2017 Annual General Meeting resolved that Loomis AB will enter into a share swap agreement with a third party. Under the agree- ment, the third party will acquire Loomis AB shares in its own name and transfer them to the incentive scheme participants. Loomis AB will thus not issue any new shares or similar instru- ments for Incentive Scheme 2017. The introduction of the incen- tive scheme enables Loomis’ key employees to become share- holders in the Company over time and will thereby increase employee commitment to Loomis’ success and growth for the bene t all of the shareholders. The incentive scheme covers around 350 employees. In 2017 the cost of the share-based por- tion of the incentive scheme – the portion for which shares will be acquired – amounted to SEK 33 million. See also Note 27.
For information on shareholdings, other board assignments, etc., refer to the section on the Board of Directors and Group Management, pages 54–57.