Getinge 2022 Annual Report slide image

Getinge 2022 Annual Report

Getinge 2022 Annual Report Total remuneration to the CEO during 2022 Remuneration and benefits to CEO in 2022, SEK 000s Executive Mattias Perjos, CEO Introduction Strategy Corporate Governance Annual Report Sustainability Report Other information Contents Fixed remuneration Base salary 24,481 Other benefits¹) 3,728 Variable remuneration Short-term variable remuneration²) Long-term variable remuneration³) 1,305 3,939 Pension expenses4) 9,792 Total 43,245 Share of fixed and variable remuneration (%) 5) 88/12 1) Other benefits refer to holiday pay, and benefits such as company car, medical insurance (sw: sjukvårdsförsäkring), health income insurance (sw. sjukinkomstförsäkring) etc. 2) Short-term variable remuneration refers to bonus accrued during the financial year 2022 and to be paid during 2023. 3) Long-term variable remuneration in the table above refer to 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. Long-term variable remuneration in the above table will be paid in 2023. As the payment of LTI-bonus over a three-year period is capped at an amount equivalent to one year's base salary and this maximum amount was reached after payment of LTI 2019-2021, there will be no payment for LTI 2020-2022 in 2023. 4) Pension cost for the CEO is based on a defined contribution basis and amounts to 40% of the base salary. 5) The portion of fixed vs variable remuneration as percentage of the grand total remuneration amounted to 88% and 12%, respectively (the pension cost for the CEO is based on the fixed base salary and is included in its entirely in the fixed remuneration). intended for the members of the Board of Directors and Senior Executives of Getinge at that time. In total, the members of the Board of Directors and the Senior Executives acquired 3,153,889 synthetic options, of which the CEO acquired 579,710 for a price that was estimated to correspond to the market value. At the time for the acquisition, the aggregated market value of all options was calculated to approximately SEK 21.8 M. All issued synthetic options were exercised in 2022. At exercise of the options, the holder received a cash payment from Carl Bennet AB of SEK 267.56 per option, which corresponded to the market value of the Getinge share of series B at the time of exercise, less the exercise price. Getinge has not participated in the offer, which has been provided to the members of the Board of Directors and the Senior Executives solely by Carl Bennet AB. Principles for application of the performance targets for variable remuneration Selection of performance targets and resolution to determine the variable remuneration has been prepared by the Remuneration Committee and resolved by the Board of Directors. The variable remuneration is pre-limited to a maximum amount and connected to pre-determined and measurable criteria, designed to contrib- ute to the business strategy and long-term added value of the company. The sustainability work is integrated in the company's day-to-day operations. If the company's principles for sustainability or ethical guidelines are not complied with, the company has the possibility to withhold any variable remuneration or reclaim already paid remuneration. After the end of the financial year and based on a proposal by the Remuneration Committee, the Board of Directors has resolved to which extent the criteria for payment of the short- and long- term variable remuneration have been fulfilled. The assessment if the financial targets have been reached has been based on the company's most recent published financial information, with any adjustments approved by the Board of Directors at the proposal of the Remuneration Committee. Application of the performance targets for short-term variable remuneration The short-term variable remuneration to the CEO is based on performance targets established by the Board of Directors based on the guidelines for remuneration to Senior Executives and is designed to promote the interests of the shareholders and the company's values, and also to create incentive for a common strive to reach the business strategy, long-term interests and a sustain- able development of the company. The variable short-term remu- neration to the CEO is limited to 80% of the fixed annual base salary. The targets for 2022 were connected to earnings, organic growth, tied-up working capital and sustainability. Two of four performance targets were fully achieved in 2022, resulting in 10% bonus payout. 69 69
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