Variable remuneration (annual bonus)
In addition to fixed salary, executive management are entitled to variable remuneration, referred to as an annual bonus. The variable remuneration consists of:
- Group’s financial targets: 50-100 per cent of the variable remuneration
- Clearly defined individual targets within the respective business area: 0-50 per cent of the variable remuneration
Annually to be established by the Board of Directors with the aim of ensuring that they are in line with the Group’s business strategy and long-term interests, including its sustainability, as well as results targets.
The size of the variable remuneration varies depending on position and may constitute between 30 and 70 per cent of fixed annual salary at full achievement of targets. There is potential to receive, at most, 200 per cent of the variable remuneration in case of over achievement of targets. Target formulation is structured so that no variable remuneration or bonus is received in the event a minimum performance level or threshold is not achieved.
The fulfilment of the targets is concluded through an overall performance assessment. For the President and CEO, and other executive management the Compensation & Sustainability Committee (CSC) is responsible.
Elekta may alter, discontinue or cancel parts of the remuneration plan, or the entire plan, and may also subsequently correct the remuneration if an error can be identified.