Remuneration to group management

Guidelines for the remuneration of Bergs Timber’s senior executives

The following guidelines cover remuneration and other conditions for senior executives (group management) of Bergs Timber. The guidelines were approved by the AGM of 26 January 2017. These guidelines must be applied to new employment contracts and when amending existing employment contracts.

Fixed salaries

The management's fixed salaries must be competitive and based on each individual's responsibilities and performance.

Variable remunerations

Management may receive variable remunerations in addition to the fixed compensation. Variable remuneration must be paid in cash or pension insurance premiums that are cost neutral for the company and which may not exceed 1/6 of the fixed annual salary. Remunerations depend on the individual's achievement of quantitative and qualitative goals.

Non-monetary benefits

Management is entitled to customary non-monetary benefits, such as company cars and occupational health insurance.

Pension

Management enjoys pension benefits as prescribed by law and collective agreements (ITP plan). The CEO may instead have a defined contributions pension plan.

Termination of employment and severance pay

The period of notice the company must provide senior executives is usually 6 months, while executives must provide the company 3-6 months' notice. Severance pay in addition to salary during the period of notice may not exceed one year's salary.

Incentive program

The appropriateness of any share or share-based incentive plans for company management is under constant evaluation.

Resolutions concerning remuneration

The remuneration committee must prepare the questions concerning the remuneration principles for group management. The prepared proposal must be submitted to the board for adoption and be taken up for approval by the AGM. The board has the ability to depart from the guidelines in individual cases if there are special reasons.