Remuneration Committee

The Remuneration Committee’s main work includes presenting recommendations to the Board regarding remuneration and terms of employment for executive management. These recommendations are also submitted to the President & CEO. The recommendations, especially with regard to long term incentive programs, are submitted by the Board to the AGM for approval. Following their approval, the President & CEO applies the remuneration proposals.

In performing its work, the Remuneration Committee is guided by a written charter and instructions that the Board has determined. The Board has not delegated any decision making powers to the Remuneration Committee.

The Board appoints the members and the Chairman of the Remuneration Committee. At the constituent board meeting following the AGM, John Hepburn was appointed as Chairman of the Remuneration Committee and Mia Brunell Livfors, Jere Calmes and Mike Parton were appointed as members of the Committee. Mia Brunell Livfors is not considered independent of the Company and its executive management, which is a deviation from the provisions in the Code. Nevertheless, the Board believes that her experience will benefit the committee and the exercise of their responsibilities will be as free of conflict as if she was independent. During 2010, the Remuneration Committee held 4 meetings. All the members were present at all meetings. Refer to Note 34 in the Annual Report for information regarding remuneration to senior executives in 2010. Refer to Note 35 in the Annual Report for information regarding remuneration to the auditors in 2010.