Remuneration

Remuneration to the Board of Directors

At the Annual General Meeting on 11 May 2010, the total fees of SEK 2,660,000 were established, comprising Board fees of SEK 2,500,000, fees to the Audit Committee of SEK 90,000 and fees to the Remuneration Committee of SEK 70,000.

Remuneration to senior executives

At the 2010 Annual General Meeting, guidelines for the remuneration of senior executives were established. The guidelines are based on remuneration that is based on the market and the environment in which the executives operate. The remuneration should be competitive, facilitating recruitment and motivating employees to remain with the company.

The remuneration will consist of fixed salaries, variable salaries, benefits and pensions. The fixed salaries and benefits will be established individually, based on the above and on the specific skills of the post holder. The variable salary will be based on clear goals, be awarded as a percentage of the fixed salary and will thus have a fixed ceiling. The pension will be a defined-contribution plan and shall be based on the same principles as for the fixed and variable remuneration. At the Annual general Meeting 2010, an incentive programme was also introduced.

Remuneration and other benefits for the Group management during 2009 are shown in the table below. In addition, SEK 5.5 m has during 2009 been recorded relating to payroll overheads including special employer’s contributions on pensions.

The Board's fees' 2009

Member	Board Fees	Committee Fees	Total
Svend Holst-Nielsen	650,000	50,000	700,000
Pontus Andersson	25,000	25,000	25,000
Erik Eberhardson	300,000	-	300,000
Per Frankling	300,000	50,000	350,000
Ulf Gundemark	300,000	50,000	350,000
Anders C. Karlsson	300,000	20,000	320,000
Stig Karlsson	300,000	20,000	320,000
Hans-Olov Olsson	300,000	-	300,000
Markku Rantala	25,000	25,000	25,000
Annette Sadolin	300,000	-	300,000

Remuneration and other benefits for the Group management during 2009

SEK	David Brodetsky	Other Group management	Total
Fixed salary incl. holiday pay	4,743,866	12,897,857	17,641,723
Variable salary	-	-	-
Incentive programme	521,715	1,566,104	2,087,819
Pension expenses	2,133,771	4,796,344	6,930,115
Other benefits	242,110	840,345	1,082,455
Total	7,642,462	20,100,650	27,742,112

Remuneration to the President during 2009

David Brodetsky's fixed salary for 2009 totalled SEK 4,700,000 per annum with a variable salary of up to 75 percent of the fixed salary. The right to pension contributions amounts to 40 percent of the fixed and variable salary, but at least 55 percent of the fixed salary. In addition, David Brodetsky has the right to free accommodation for the duration of his employment and during a transition period of two years (2009–2010) this right also includes current costs and compensation for the tax effect of the benefit. David Brodetsky’s right to pension contributions is hedged in EUR and, as from 1 January 2010, his fixed and variable salary will also be hedged in EUR. In addition, David Brodetsky has the right to a free car and certain other benefits. What David Brodetsky received 2009 is detailed above. The employment runs with a notice period of one year from the company and six months from David Brodetsky. David Brodetsky is bound by a non-competition clause that is valid for one year from the termination of employment, during which he is entitled to remuneration equivalent to fixed and variable parts, plus the right to pension contributions as described above.

Remuneration to Group management in general during 2009

The Group management consisted during 2009 of, in addition to David Brodetsky, Nils-Johan Andersson, Peter Andsberg, Venant Krier, Carl-Gustav Nilsson and Anders Persson. Hannu Paitula was part of the Group management up to and including 30 June 2009. The remuneration of the Group management follows the guidelines adopted by the Annual General Meeting. The employment contracts contain notice periods of up to 24 months from the company's side and are bound with non-competition clauses.

Incentive programme

At the 2010 Annual General Meeting, an incentive programme consisting of warrants was adopted. Approximately 90 employees were invited to subscribe for a total of 784,000 options which can be converted during the period 1 June 2012 to 31 May 2013 for a price per share equivalent to one hundred twenty (120) percent of the average for each trading day during the period from 12-19 May 2010 (inclusive). The warrants have been externally valued according to the Black-Scholes option pricing model. The participants’ purchase of warrants is subsidised by a cash contribution, which after tax, amounts to half the acquisition cost spread over a period of three years, provided that the participant remains employed within the Group and continues to hold the warrants. The costs for the incentive program are not expected to exceed SEK 3 m annually. At full utilisation, these shares represent approximately one per cent of the shares in the company.

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