Note 4 - Employees, employee expenses and benefits

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. As of 2012, Board member can invoice their fees.

Board members, employees of the Government Offices of Sweden, and employee representatives and their deputies 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 if Directors are employed in companies in the Svenska Spel Group. The Playscan subsidiary has a Board member who is not employed by AB Svenska Spel and who receives fees for Board work.

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

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). This team includes the President of the Parent Company and all members of Group management, managers who are not members of Group management, but report directly 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

Remuneration principles for executives were adopted by the AGM on 24 April 2012 and are applied throughout the 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.

The decision on employment terms for the CEO is prepared by the Remuneration Committee and decided by the Board. Employment terms for other executives who report to the CEO are decided on by the CEO after consultation with the Remuneration Committee. Before decisions are made regarding individual remuneration, written documentation is to be presented showing the Company’s overall costs. The Board’s Remuneration Committee ensures that employment terms comply with government guidelines by comparing remuneration for equivalent roles in other State-owned and private companies that are comparable to Svenska Spel in terms of size, complexity and revenue.

Remuneration of the CEO and the Company’s senior executives consists of fixed basic salaries, benefits and pensions. Benefits primarily comprise company cars. Senior executives who do not have a company car benefit receive monthly compensation equivalent in value to the company car. Pension costs pertain to the cost that impacted earnings in 2012. Senior executives have the option of exchanging their gross salary for extra pension deposits, which are included in the recognised pension amount. 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.

Remunerations and terms for senior executives within Group ­executive management

CEO

Lennart Käll, the President and CEO of AB Svenska Spel, received salary and benefits of SEK 3,694,000 in 2012. Lennart Käll’s pension premiums amounted to SEK 1,070,000 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.

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. The severance is paid on a monthly basis with no supplement for pension or 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. Severance pay is never paid past the age of 65.

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. The severance is paid on a monthly basis with no supplement for pension or 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. Severance pay is never paid past the age of 65.

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 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.

• Note 1 - Accounting and valuation policies
• Note 2 - Revenue per key category
• Note 3 - Reporting per segment
• Note 4 - Employees, employee expenses and benefits
• Note 5 - Auditors' fees
• Note 6 - Financial income and expenses
• Note 7 - Taxes
• Note 8 - Intangible assets
• Note 9 - Property, plant and equipment
• Note 10 - Financial risk management
• Note 11 - Financial instruments
• Note 12 - Trade and other receivables
• Note 13 - Prepaid expenses and accrued income
• Note 14 - Cash and cash equivalents
• Note 15 - Equity
• Note 16 - Earnings per share
• Note 17 - Unpaid winnings
• Note 18 - Other non-current liabilities
• Note 19 - Trade payables and other current liabilities
• Note 20 - Settlement funds and funded winnings
• Note 21 - Accrued expenses and deferred income
• Note 22 - Leasing
• Note 23 - Contingent liabilities, pledged assets and future obligations
• Note 24 - Affiliates
• Note 25 - Participations in Group companies
• Note 26 - Profit from participations in Group
• Note 27 - Uncertainty in estimates and assessments
• Note 28 - Information about the Parent Company