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 8 May 2019. These guidelines must be applied to new employment contracts and when amending existing employment contracts.

The Board of Directors has decided to propose to the 2019 Annual General Meeting the following guidelines for salaries and other remuneration for senior executives to apply as of the Annual General Meeting.

 Remuneration of senior executives will comprise fixed salary, variable remuneration, additional benefits and provisions for pension. Senior executives means the Chief Executive Officer and the other members of Group Management.

 The total remuneration is to correspond to market practice, be competitive and stand in relation to responsibilities and authority. Variable remuneration must be limited to constituting a certain share of the fixed salary, and based on the fulfilment of established goals.

 Upon termination of an employment contract, either by the company or the employee, the period of notice is not to exceed six months. Upon termination by the company, severance pay of at most twelve months can be provided. Income from other employment or operations    must be deducted from the severance pay.

Pension benefits must be defined benefit and entitle senior executives to a pension starting at the age of 65. Variable remuneration does not accrue pension rights.

The Board of Directors has the right to depart from these guidelines if there is particular reason to do so in an individual case.

These guidelines do not replace compulsory conditions under labour legislation or collective agreements.