Note 5 - Employees, employee costs and benefits

	2011			2010
Average number of employees	Number of employees	of whom men, %		Number of employees	of whom men, %
Parent Company	755	63		744	62
Other Group companies	1,019	52		1,021	51
Total	1,774	57		1,764	56
	2011			2010
Board of Directors, CEO and Group management	Number	of whom men		Number	of whom men
Board of Directors	11	5		11	6
CEO	1	1		1	1
Group management, excluding CEO	9	5		9	6

Pay, remuneration,	2011			2010
and social security expenses,	Board, CEO and	Other		Board, CEO and	Other
SEK 000s	Group management	employees		Group management	employees
Parent Company
Pay and remuneration	16,468	331,736		24,270	322,498
Social security expenses	6,844	115,772		9,135	110,753
Pension costs	6,881	46,592		6,223	41,303
Total	30,193	494,100		39,628	474,554
Other Group companies*
Pay and remuneration	2,529	324,774		1,687	319,110
Social security expenses	959	92,704		649	88,992
Pension costs	676	17,202		489	15,441
Total	4,164	434,680		2,825	423,543
*No special remuneration is paid for Board assignments in subsidiaries
Group
Pay and remuneration	18,997	656,510		25,957	641,608
Social security expenses	7,803	208,476		9,784	199,745
Pension costs	7,557	63,794		6,712	56,744
Total	34,357	928,780		42,453	898,097

Fees and other remuneration paid	Board fees			Audit Committee			Remuneration Committee			Total
to the Board, SEK 000s	2011	2010		2011	2010		2011	2010		2011	2010
Anitra Steen, Board Chairman, from 19/4, 2011	167	—		—	—		10	—		177	—
Margareta Winberg, Board Chairman, to 18/4	83	250		—	—		5	15		88	265
Hans Bergenheim, Board member from 20/4	93	62		10	7		—	—		103	69
Stefan Borg, Board member from 18/4	31	93		—	—		—	—		31	93
Lena Borgström-Melinder, Board member to 18/4, 2011	31	93		7	20		—	—		38	113
Björn Fries, Board member	93	93		—	3		3	5		96	101
Catarina Fritz, Board member from 19/4, 2011	62	—		13	—		—	—		75	—
Eva-Britt Gustafsson, Board member	93	93		10	10		—	—		103	103
Lena Jönsson, Board member	93	93		—	—		3	8		96	101
Lars Otterbeck, Board member to 20/4, 2010	—	31		—	—		—	3		—	34
Michael Thorén, Board member from 19/4, 2011	—	—		—	—		—	—		—	—
Christer Åberg, Board member 19/4, 2011	62	—		—	—		5	—		67	—
Anders Andersson, Board member, employee rep.	—	7		—	—		—	—		—	7
Jenny Bengtsson, Board member, employee rep. from 19/4, 2011	—	—		—	—		—	—		—	—
Peter Cernvall, Deputy Board member, employee rep.	—	8		—	—		—	—		—	8
Loi Diep, Deputy Board member, employee rep. from 19/4, 2011	—	—		—	—		—	—		—	—
Patrik Lindell, Deputy Board member, employee rep. from 20/4, 2011	—	—		—	—		—	—		—	—
Roland Norbäck, Deputy Board member, employee rep. to 20/4, 2011	—	4		—	—		—	—		—	4
Martina Ravn, Board member, employee rep.	—	8		—	—		—	—		—	8
Total	808	835		40	40		26	31		874	906

Board fees

The Chairman and Directors of the Board receive fees in accordance with the resolution by the AGM. The same applies to the Chairman and Directors in the Audit Committee and the Remuneration Committee.

Board members who are employed by the Government Offices of Sweden and employee representatives are not paid Board or committee fees.

The remuneration presented above pertains to the Parent Company AB Svenska Spel. No fees were paid to the Directors of subsidiaries and sub-subsidiaries, since all Directors are employed in companies in the Svenska Spel Group.

The changes to the composition of Directors and employees on the Board are presented in the above table/compilation.

Salary and other remuneration to	Salary			Other benefits			Other remuneration			Total salary and remuneration			Pensions costs
senior executives, SEK 000s	2011	2010		2011	2010		2011	2010		2011	2010		2011	2010
Lennart Käll, CEO and President, from. 12/9 2011	1,089	—		2	—		—	—		1,091	—		343	—
Anders Hägg, interim CEO and President, from 23/6 2010–11/9 2011	2,436	1,251		65	32		—	—		2,501	1,283		3,264	1,518
Meta Persdotter, CEO and President, 1/2 2009–22/6 2010	—	2,643		—	71		—	3,600		—	6,314		—	859
Total	3,525	3,894		67	103		—	3,600		3,592	7,597		3,607	2,377
Other senior executives in Group management
Marie Avander, Manager, Vegas business area	1,319	1,267		73	76		—	—		1,392	1,343		446	376
Anna Björklund, HR Manager	1,355	1,329		62	62		—	—		1,417	1,391		422	448
Annika Ferm, Communication Manager from 1/2 2011	1,062	—		39	—		—	—		1,101	—		274	—
Anders Granvald, Manager Development operating area	1,364	1,307		4	4		—	—		1,368	1,311		376	413
Anders Hägg, CFO through 22/6 2010	—	677		—	32		—	—		—	709		—	347
Per Jaldung, Manager, Casino Cosmopol business area	1,338	1,214		74	66		—	—		1,412	1,280		359	342
Marie Loob, CFO from 1/9 2010	1,280	424		5	2		—	—		1,285	426		347	84
Mattias Mildemborn, Interim Manager, Gaming & Lotteries business area from 11/5 2011	864	—		50	—		—	—		914	—		187	—
Jörgen Olofsson, Manager, Production operating area	1,207	1,125		8	8		—	—		1,215	1,133		310	280
Bengt Palmgren, Senior Legal Counsel	1,532	1,486		63	63		—	—		1,595	1,549		621	669
Håkan Sjöstrand, Manager, Gaming & Lotteries
business area to 9/5 2011	1,554	1,380		87	86		—	—		1,641	1,466		270	305
Johan Tisell, Interim Information Manager from
15/3 2010–31/1 2011	74	707		1	5		—	—		75	712		21	144
Thomas Agrell, Marketing Manager from 1/9 2009 to 10/6 2010	—	1,337		—	26		—	600		—	1,963		—	368
Mikael Franzén, Manager, Internet business area to 26/10 2009	—	1,060		—	7		—	1,980		—	3,047		—	261
Andreas Jansson, Information Manager through 30/10 2009	—	717		—	—		—	—		—	717		—	151
Total	12,949	14,031		466	436		—	2,580		13,415	17,047		3,633	4,189
Other senior executives
Peter Jannerö, Interim Market Manager, from 14/6 2010 to 31/8 2010	—	275		—	1		—	0		—	276		—	60
Ann-Sofie Olsson, Interim Information Manager to 10/3 2010	—	325		—	1		—	0		—	326			83
Ann-Sofie Olsson, CEO, Playscan AB from 15/3 2010	1 109	407		8	1		—	960		1,117	408		317	147
Total	1,109	1,008		8	3		—	960		1,117	1,011		317	289

Remuneration of senior executives

Senior executives

Those who at anytime are part of the team of "senior executives" are determined by the Remuneration Committee under the application of the provisions stipulated in Chapter 8, Section 51 of the Swedish Companies Act (2005:551). Senior executives at the Svenska Spel Group are the President of the Parent Company and all members of Group management, any managers who are not members of Group management yet directly subordinate to the President of the Parent Company, the presidents of the subsidiaries and the members of the subsidiaries’ management teams.

Remuneration of senior executives – guidelines, nomination process, decisions and monitoring

The guidelines that apply to the remuneration of senior executives were adopted at the AGM on 19 April 2011 and apply to the entire Group. These guidelines are based on the guidelines issued by the Government on 20 April 2009 regarding employment terms for senior executives in State-owned companies. The policies specify that total benefits to senior executives are to be reasonable and well balanced. Remuneration should be competitive, have a ceiling, be appropriate and contribute to sound ethical and corporate culture. Remunerations should not be leading in relation to comparable companies but embody moderation. The decision on employment terms for the CEO is prepared by the Remuneration Committee and decided by the Board. Employment terms for other executives are decided on by the CEO after the customary consultation with the Company’s Remuneration Committee. The outcome of agreements reached is reported to the Board. Before decisions are made regarding individual remuneration, written documentation is to be presented showing the Company’s overall costs. The Board ensures that remuneration follows the guidelines by comparing remuneration for equivalent roles in other comparable State-owned and private companies operate only in Sweden in terms of parameters such as size, complexity, and revenue.

Remuneration of the CEO and the Company’s senior executives consists of fixed basic salaries, benefits and pensions. Svenska Spel does not compensate senior executives with variable or bonus-based remuneration or any remuneration in the form of financial instruments.

Decisions concerning employment terms and conditions for senior executives of subsidiaries are made by the presidents of the subsidiaries following consultations with the subsidiaries’ Boards. Remuneration to senior executives of the subsidiaries is recognized in the annual reports for the subsidiaries.

Changes in the executive management team and other senior executives

Effective 12 September 2011, Lennar Käll was appointed CEO and President of AB Svenska Spel. In conjunction with Lennart Käll assuming his position, Ander Hägg stepped down from his position as Interim President and CEO of AB Svenska Spel and made his services available to the Company through 31 December 2011 when he resigned from AB Svenska Spel.

Annika Ferm assumed her position as Communication Manager on 1 February 2011. In conjunction with Annika Ferm assuming her position as Communication Manager, Johan Tisell’s assignment as Interim Communication Manager concluded on 31 January 2011.

On 29 April 2011, Håkan Sjöstrand, Manager of the Gaming & Lotteries business area, announced that he would be stepping down from his position at the company as of 30 September 2011. Mattias Mildenborn assumed the position of Interim Manager of the Gaming & Lotteries business area on 10 May 2011.

Remunerations and terms for senior executives within executive management

CEO

Lennart Käll, the President and CEO of AB Svenska Spel, received salary and benefits of SEK 1,091,000 in 2011. Lennart Käll’s pension premiums amounted to SEK 343,000 in 2011. Lennart Käll is not part of the ITP plan and is entitled to pension premiums corresponding to 30% of his pensionable monthly salary in accordance with his agreement.

During 2010, Anders Hägg, in his role as interim CEO as well as interim President for AB Svenska Spel, received salary and remuneration totalling SEK 2,501,000 in 2011. Costs for standard pension contributions in accordance with the ITP plan totalled SEK 943,000 for Anders Hägg during 2011. Anders Hägg is entitled to ITP pension as of the age of 65. Anders Hägg is entitled to extra retirement pension from 1 January 2010 until the age of 65. During 2011, the Company recognised an accrued cost of SEK 2,321,000 for this commitment. In addition to a fixed monthly salary from his position as CFO, in his capacity as Interim CEO, Anders Hägg received a salary supplement of SEK 80,000 per month, as well as extra pension premiums for the salary supplement of SEK 24,000 per month.

Remunerations and terms for other senior executives in Group executive management

For other senior executives within executive management, pensions are paid in accordance with the ITP plan, with the age of retirement at 65. On notice of termination, a mutual notice of six months applies. In the event that notice is given from the Company’s side, severance pay is paid out for a maximum of 18 months, corresponding to the monthly salary with no supplement for benefits. When new employment has been secured or on receipt of income from business activities, severance pay from the company that initiated the termination will be reduced in the amount of the new income during the period in which severance pay is paid.

Remunerations and terms for other senior executives

For other senior executives, remuneration is paid in the form of basic salaries, benefits and pension under collective agreement in accordance with the ITP plan, with retirement at the age of 65.

Remuneration of other employees

Employees of the AB Svenska Spel Group receive remuneration in the form of basic salaries, benefits and pension under collective agreement. Variable remuneration is provided to employees for work during inconvenient working hours. Bonus-based remuneration or remuneration in the form of financial instruments is not paid.