Getinge 2022 Annual Report slide image

Getinge 2022 Annual Report

Getinge 2022 Annual Report Introduction Strategy Corporate Governance Annual Report Sustainability Report Other information Contents Remuneration report 2022 Introduction This report reflects how the guidelines for remuneration to Senior Executives, adopted at the 2022 Annual General Meeting, have been implemented and applied during 2022. The report also provide details on the remuneration to the CEO, how the performance targets for variable remuneration has been applied, the synthetic option program issued by the majority shareholder and information that the company has not implemented any share- or share price- related incentive programs. This report has been prepared in compliance with the Swedish Companies Act and the Rules on remuneration of the Board and Executive Management and Incentive programs issued by the Swedish Corporate Governance Board (the Remuneration Rules). Further information on remuneration to Senior Executives is available in Note 29 on page 109-110 of the Annual Report 2022. Information on the work by the Remuneration Committee in 2022 is set out in the Corporate Governance Report, which is included on pages 28-56 of the Annual Report 2022. Remuneration to the members of the Board of Directors is not covered by this report. Such remuneration is resolved annually by the Annual General Meeting and disclosed in Note 29 on page 109 of the Annual Report 2022 and the Corporate Governance Report on pages 38-40 of the Annual Report 2022. The group's overall performance 2022 The CEO summarizes the group's result and overall performance in his statement, which is included on page 8-9 in the Annual Report 2022. The company's remuneration guidelines: scope, purpose and deviations A prerequisite for successful implementation of the company's business strategy and safeguarding of its long-term interests and sustainability is that the company is able to recruit, motivate and retain qualified personnel. By enabling the possibility to offer Senior Executives a competitive total compensation, the guidelines contribute to the ability for the company to, on a long-term basis, retain qualified personnel. The total remuneration to Senior Executives shall be on market terms and consist of base salary (fixed cash remuneration), variable cash remuneration, any other variable remuneration, pension benefits and other benefits. The remuneration, and other employment conditions for Senior Executives, shall be on market terms and competitive on every market where Getinge operates. In addition, the General Meeting can decide on share- or share price-related remunerations. The fixed remuneration (the base salary) should be based on the individual executive's area of responsibility, authority, competence, experience and performance. The allocation between base salary and variable remuneration shall be proportional to the executive's level of responsibility and authority. The variable remuneration shall always be pre-limited to a maximum amount and connected to pre-determined and measurable criteria, designed to contribute to the business strategy, long-term added value and sustainability of the company. The guidelines adopted at the Annual General Meeting 2022 are available on pages 63-65 and the proposed revised guidelines for 2023 are available on pages 65-67 in the Annual Report 2022. During 2022 the company has complied with the guidelines adopted at the Annual General Meeting 2022. On the basis of the possibility prescribed in the guidelines for remuneration to Senior Executives, the Board of Directors has however during 2022 re- solved on a temporary deviation from the guidelines in one specific case, relating to an agreement with Lena Hagman (former EVP Quality Compliance, Regulatory & Medical Affairs) on extended notice period and salary during the notice period, as well as the possibility for Getinge to call off consultancy services if deemed necessary. The Board of Directors has resolved on the temporary deviation from the guidelines as it has been deemed necessary to serve the company's long-term interests and a sustainable devel- opment of the company by ensuring a responsible management of the quality regulatory area as well as continued support and com- petence to the extent that Getinge deems it necessary. In addition, during 2022 the Board of Directors has resolve on a temporary de- viation from the guidelines that does not apply until the financial year 2023, relating to some supplementary pension contributions to member of the group management who are included in the ITP1 pension plan. The deviation has been resolved upon in order for the concerned persons to be treated equally with those who are included in ITP, as a result of a mandatory rule change for ITP. However, in the guidelines that the Board of Directors proposes to be adopted by the Annual General Meeting 2023, the guidelines for pension contributions have been amended to also cover the rule change, and the above-mentioned handling will thereby be in line with the proposed guidelines. In addition to the temporary deviations made on the basis of the guidelines mentioned above, no deviations from the guidelines nor any derogations from the procedure for resolution on remuneration, established by the remuneration guidelines, have been made. The auditors' statement regarding the company's compliance with the guidelines is available on www.getinge.com/int/about-us/ corporate-governance/general-meetings under the tab Annual General Meeting 2023. No paid remuneration has been reclaimed during 2022. Share based remuneration - outstanding share- or share price-related incentive programs The General Meeting has not resolved on implementation of any share- or share price-related incentive programs. Synthetic option program issued by the majority shareholder During 2018, the Board of Directors of Getinge AB was informed that the majority shareholder of the company, Carl Bennet AB, had issued an incentive program consisting of synthetic options 80 68
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