Remuneration to the board and senior executives
The following guidelines cover the managing director and other members of the group management, referred to in the text below as senior executives.
The guidelines apply from and including the Annual General Meeting 2021. LINK to document
Senior executives do not participate in the board's consideration of and decisions on compensation matters to the extent that they are affected by such issues.
The guidelines must promote the Company's business strategy, long-term interests and sustainability.
For more information about the Company's business strategy, see the latest published annual report or [link]
Successful implementation of the Company's business strategy and securing the Company's long-term interests, including sustainability, requires that Biokraft can attract, recruit and retain qualified senior executives by offering competitive remuneration.
Remuneration components and conditions for members of the group management
The compensation for the CEO and other members of the group management can consist of the following features: fixed cash salary (basic salary), short- and long-term variable compensation, occupational pension, and other benefits.
In addition, the meeting can decide on share and share price-related incentive programs independently of these guidelines.
Basic salary
The base salary, reviewed annually, is determined considering the position, qualification, individual performance and employee salary increases.
Variable cash compensation
Variable compensation aims to promote fulfilling the annual short-term goals, which must be predefined, measurable and related to Biokraft's financial or non-financial goals and business strategy, including sustainability.
The board evaluates the CEO's results about set criteria, while the CEO is responsible for evaluating other members of the group management.
Variable cash compensation may not exceed 50 percent of the annual fixed cash salary for the CEO and 25 percent of the fixed annual salary for other members of the group management.
Pension
The total pension costs may correspond to no more than 30 percent of senior executives annual fixed cash salary, including statutory occupational pension and pension attributable to short-term variable cash compensation. Long-term variable remuneration is not pensionable.
Pension arrangements and pensionable salary as above shall apply to the members of the group management, except if the individual is covered by a collective agreement that stipulates otherwise.
Benefits
Benefits are paid in the form of, but are not limited to, for example, life insurance, health insurance, car benefit, housing benefit and other customary benefits. Benefits may total no more than ten (10) percent of the fixed annual cash salary.
The board can use other types of compensation to fulfil the Company's overall goals, including compensation of a one-off or extraordinary nature, such as a sign-on or stay-on bonus. Such compensation components may not exceed 50 percent of the annual fixed cash salary and may not be paid more than once per year per individual.
Long-term incentive programs
In addition to the above compensation, senior executives can be offered long-term incentive programs with the aim of rewarding long-term strategic and financial results and thereby linking the interests of the company management with the interests of the shareholders.
A general meeting must decide on share and share price-related incentive programs. The necessary conditions for each launched long-term incentive program are reported in Biokraft's annual compensation report before the annual general meeting.
The remuneration committee evaluates performance about performance measures in the short and long-term incentive programs, and the evaluation shall be based on the latest available reports published by Scandinavian Biogas.
Termination of employment
The notice period for a group management member at the initiative of the Company amounts to a maximum of twelve (12) months. The notice period for the managing director at the industry of the Company amounts to a maximum of six (6) months. The notice period for a member of group management at the employee's initiative corresponds to a maximum of six (6) months.
For the CEO, severance pay corresponding to a maximum of twelve (12) months is paid.