The Board of Directors determines the incentive schemes for the President and CEO and other members of the Board of Management, and the principles underlying them. The Board of Directors also decides on other possible long-term incentive schemes for senior management, unless they are by law determined by the Annual General Meeting. The Board of Management decides on bonus schemes for other directors and managers.
The Group also operates a bonus scheme, which is implemented globally in all businesses. The bonus is based on the Group’s profitability and agreed personal targets. Approximately 1,400 directors and managers are covered by this bonus scheme.
The Board of Directors has decided on a long-term bonus scheme for senior management tied to the stock development of the company’s B-share. The bonus scheme applies to approximately 40 directors. More information about the bonus scheme can be found in the notes to the Consolidated Financial Statements on page 100 in the Annual Report.
The company has two stock option schemes for senior managers during the review period. The 2001 options, the subscription period of which ended 31 March 2007, covered 78 key personnel, and the 2002 options, the subscription period of which will end 31 March 2008, applied to 39 key personnel. More information on these schemes is provided on pages 108 and 126 of the Financial Review in the Annual Report.
The Group’s white- and blue-collar employees are covered by various bonus or profit-based incentive schemes. These are applied in each country according to that country’s legislation, or to agreements concerning profit-sharing schemes. All in all, some 60% of the company’s employees are covered by the Group’s bonus scheme and various other profit-based incentive schemes.
