The guidelines for compensation and other terms of employment for the President and other senior executives were adopted by the Annual General Meeting on 15 March 2017. The guidelines are the same as those that have applied since 2010, with the exception that it was made possible to replace the previous variable cash compensation with a long-term share-based incentive programme.
During the year the Executive Committee was made up of the President and nine other members.
Fixed base salary
The members of the Executive Committee shall be paid a base salary in the form of a fixed, cash monthly salary that is attractive compared with the going rate in the market. This fixed base salary constitutes compensation for a committed work contribution at a high professional level that creates value-added for Axfood’s customers, owners and employees.
In addition to their base salary, the members of the Executive Committee shall be offered short-term and long-term variable compensation. Short-term variable compensation is based on the achievement of Axfood’s targets for:
- sales growth
- and personal goals for the financial year
The short-term variable compensation is an annual form of compensation. The target outcomes are set by the Compensation Committee at the start of the year and have a cap as follows:
- 70% of base salary paid out during the year for the President
- 40%–55% of base salary paid out during the year for the other members of the Executive Committee
For long-term variable compensation, see Long-term incentive programme.
The complete principles adopted by the 2017 Annual General Meeting are detailed in the minutes recorded at the Annual General Meeting.