Getinge 2022 Annual Report
Getinge 2022 Annual Report
Introduction
Strategy
Corporate Governance
Annual Report
Sustainability Report
Other information
Contents
The performance by the CEO during the reported financial year: short term variable cash remuneration
Criteria for determination of short-term variable remuneration for the CEO and outcome, SEK 000s
Executive
Mattias Perjos, CEO
Performance target
Adjusted EBITA"
Net sales - organic growth²)
Tied-up working capital - no. of days
Sustainability reduction of CO2
emissions in own operations (tons)³)
Sustainability readiness to submit
an application to have environmental
targets validated by the Science Based
Target initiative (SBTI)4)
Weighting of
performance target
Outcome of
performance target
Variable remuneration
per performance target
1) The adjusted EBITA refer to the operating profit adjusted for exchange rate changes, acquisitions, divestments, restructuring costs and other material items affecting comparability.
2) Refers to the Group's organic net sales growth.
50%
SEK 3,955 M
20%
20%
5.4%
96 days
5%
-7,113 tonnes
652
5%
Achieved
652
1,305
3) Refers to the Group's reduction of CO2 emissions (in tonnes of CO2 equivalents) in its own operations compared to the base year 2021. CO2 emissions in its own operations include emissions
in Scope 1, including emissions from the consumption of oil and gas, and Scope 2, including emissions from the consumption of electricity, heating and cooling.
4) In December 2020, Getinge signed a commitment to develop environmental targets in accordance with SBTI. The performance target refers to that Getinge must have completed all the necessary
measures to be able to submit an application to have Getinge's environmental targets validated by SBTI.
Applying the performance targets for the variable
long-term remuneration
In addition to base salary and the annual variable remuneration, the
CEO can receive a variable long-term bonus ("LTI-bonus"), which
rewards clear, measurable performance targets and is conditioned
by continued employment at the end of the performance period
for the LTI-bonus (with some customary exceptions). The criteria
for payment of the LTI-bonus shall be constructed to promote the
long-term interests of Getinge and sustainable development of the
company.
The performance target for LTI 2020-2022 and 2021-2023, respec-
tively, are earnings per share, adjusted in for acquisitions, divest-
ments, restructuring costs and other material non-recurrent costs.
The performance target for LTI 2022-2024 is adjusted earnings per
share over a three-year period that is adjusted for the categories
of adjustment items that the Board of Directors determines at the
recommendation of the Remuneration Committee at implementa-
tion of the program.
By relating the performance target to the objective of the share-
holders, a joint interest to further promote Getinge's business
strategy and long-term interests is created. The vesting period
for the LTI-bonus is three financial years. At the end of the finan-
cial year 2022, the incentive program LTI 2020-2022 has expired.
Payment of LTI-bonus is during a three-year period capped at an
amount corresponding to one year's base salary, and this maximum
amount was reached after payment of LTI 2019-2021, which means
that there will be no payment for LTI 2020-2022 in 2023. However,
the CEO is entitled to an amount of SEK 3,939 K which constitutes
the exceeding remuneration that the CEO earned in 2021 or earlier
but which was not paid out due to that the Board of Directors
discretionary applied the rule on limitation of maximum payment of
variable remuneration before the rule was added to the company's
remuneration guidelines.
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