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 qualify for pension benefits in general, except where mandatory by collective bargaining agreement provisions applicable for the executive. In such case, this shall be considered when creating the total benefits package. In addition to the above, Senior Executives may be covered by an additional health income insurance (sw. sjukinkomstförsäkring). For employments governed by other than Swedish regulations, pension benefits and other insurances may be duly amended to comply with mandatory rules or established local regulations, taking into consideration, to the extent possible, the overall purpose of these guidelines. Other benefits Other benefits such as company car, additional medical insurance (sw. sjukvårdsförsäkring) and company health care (sw. företags- hälsovård), may be provided to the extent this is considered to be in line with market terms for Senior Executives on similar positions on that local market. The total value of such benefits may not exceed 10% of the fixed base salary. Conditions for termination Senior Executives shall have a permanent employment. If the company terminates the employment, the notice period shall not exceed twelve months. Upon termination of employment, the total of the fixed salary during the notice period together with severance pay may not exceed an amount equivalent to two years fixed base salary for the CEO, and one year for other executives. If the execu- tive terminates the employment, the notice period shall not exceed six months and be without any right to severance pay. Senior Executives may be entitled to compensation for any com- petition restrictions after the termination of employment, however, only to the extent severance pay for the corresponding period is not awarded. The purpose of such compensation is to compensate the executive for any gap between the monthly base salary at the notice of termination and (lower) monthly income received, or that could be received, by a new employment, assignment or own 1) Pension contributions may, exceptionally, exceed this limit if required to comply with mandatory law, collective bargaining agreements or other applicable rules or established local practice, taking into consideration, to the extent possible, the overall purpose of these guidelines. business. The compensation can be awarded during the period of the competition restriction, however, not more than for 12 months after the termination of employment. Salary and employment conditions for employees When preparing the Board of Director's proposal for these remu- neration guidelines, salary and employment conditions for the company's employees have been considered. This have been made by including information of the total income of the employees, the components of the remuneration and the increase and growth rate over time, as part of the Remuneration Committee's and the Board of Directors' basis for decision when evaluating whether the guidelines and the limitations set out herein are reasonable. The development of the gap between the remuneration to Senior Executives and remuneration to other employees will be disclosed in the remuneration report. 4. The resolution process to determine, review and implement the guidelines The Board of Directors has established a Remuneration Com- mittee. The Committee's tasks include preparing the Board of Directors' decision to propose guidelines for Senior Executive remuneration. These are reviewed annually and new proposals for guidelines shall be drafted by the Board at least every fourth year and presented to the Annual General Meeting for resolution. The guidelines shall be in force until new guidelines are adopted by the Annual General Meeting. The Remuneration Committee shall also monitor and evaluate programs for variable remuneration to Senior Executives, the guidelines for remuneration to Senior Executives, as well as the current remuneration structures and compensation levels in the company, and provide recommendations to the Board of Directors in relation to remuneration to the CEO. Regarding resolution on remuneration to other Senior Executives in accordance with the guidelines (other than the specifically regulated above) the CEO shall consult with the Remuneration Committee. The CEO and other members of the group management do not participate in the Board of Directors' processing of, and resolutions on, remuneration-related matters when such matters concern them. The Board of Directors shall annually draw up a remuneration report that shall be presented to the Annual General Meeting for approval. 5. Deviations from the guidelines The Board of Directors may temporarily resolve to deviate from the guidelines, entirely or partly, if in a specific case there is special cause for the deviation and a deviation is necessary to serve the company's long-term interests, a sustainable development of the company or to ensure the company's financial viability. As set out above, the Remuneration Committee's tasks include preparing the Board of Directors' resolutions in remuneration-related matters. This includes any resolutions to deviate from the guidelines. 6. Description of material changes of the guidelines and how the shareholders' opinions are considered The current applicable guidelines for remuneration to Senior Executives were adopted on the 2022 Annual General Meeting. The guidelines that are now proposed to be adopted by the 2023 Annual General Meeting correspond in principle to the guidelines adopted by the 2022 Annual General Meeting, save for that the provisions for pension contributions for Senior Executives, excluding the CEO, have been clarified in order to specify a common cap, regardless of which pension plan the Senior Executives belong to. No remarks on the remuneration guidelines have emerged in connection with dealings at General Meetings. 7. Other The guidelines entail a level of remuneration, which in principle is equivalent to the remuneration for the financial year 2022. Information regarding remuneration, etc. to Senior Executives during the financial year 2022 is set out in note 29 of the Annual Report 2022, including any previously resolved remuneration that has not yet been due for payment, and in the remuneration report. Gothenburg in March 2023 The Board of Directors of Getinge AB (publ) 67 20
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