Page 46 - Kitron Annual Report 2011

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Notes to the consolidated financial statements
46
Kitron annual report 2011
Declaration of remuneration to senior executives
The table above includes information on all individuals covered by the disclosure obligation at any time during
the year, while the following declaration is limited to the CEO and the vice presidents. The CEO is covered by
the same schemes as the vice presidents unless otherwise stated.
The following review presents the executive remuneration policy as resolved by the board in Kitron ASA. The
mandatory executive remuneration policy was resolved by Kitron ASA’s annual general meeting on 6 May 2010.
Changes, if any, may be resolved by the annual general meeting on 26 April 2012.
The executive remuneration policy for Kitron ASA applies to all units in the group.
Recommended executive remuneration policy
Kitron wants to offer competitive terms in order for the company to attract and retain competent managers, and
at the same time achieve alignment of interest between management and shareholders. The remuneration and
other terms of employment for the executives reflect a number of factors, such as the position itself and the
market conditions.
The remuneration comprises a reasonable basic salary and a pension contribution plus a cash bonus, which
is principally linked to the company’s performance. For the CEO and the CFO the total bonus may not amount
to more than 50 per cent of base salary. For the other members of the corporate management team the total
bonus is limited to 50 per cent of base salary. Kitron does not offer other substantial benefits of any kind than
company cars. Certain tools, which are needed to perform executive duties, represent a taxable benefit which
has been included in the amounts in the table above.
Kitron honours all employment agreements which are in effect. Future supplements to employment agreements
and new employment agreements will be in accordance with these guidelines.
The board determines the remuneration and other terms of employment of the CEO and issues guidelines for
the remuneration of leading personnel. The board has appointed a remuneration committee consisting of three
members from the board that are preparing matters for decision by the board. The CEO determines the remu-
neration and other terms of employment of the vice presidents within the framework resolved by the board.
The vice presidents are members of Kitron’s general pension contribution scheme. The age of retirement is
67 years. The annual pension contribution to the CEO is six per cent of base salary. The contribution is coor-
dinated with the contribution to the general scheme. The CEO’s age of retirement is 65 years. The CEO may
under certain circumstances have the right to receive twelve months post-employment compensation. There is
no other post-employment remuneration or employment protection beyond a normal notice period.