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Note 4 - Employees, employee expenses and benefits

  2014   2013
Average number of employees per location, for the year Number of employees of whom
men, %
  Number of employees of whom
men, %
Parent Company          
Visby 344 61   346 59
Sundbyberg 283 67   298 67
Rest of Sweden 41 84   43 84
Total – Parent Company 668 65   687 64
           
Other Group companies          
Sundsvall 77 59   78 60
Malmö 193 51   204 51
Gothenburg 317 52   327 51
Stockholm 409 54   392 54
Total – Group 1,664 58   1,688 57
           
  2014   2013
No. of employees by location and form of employment at 31 December Open-ended contracts1 Fixed-term employment2 Total of whom men, %   Open-ended contracts1 Fixed-term employment2 Total of whom men, %
Parent Company                  
Visby 351 32 383 64   340 26 366 60
Sundbyberg 271 13 284 65   293 19 312 66
Rest of Sweden 42 42 83   42 42 83
                   
Other Group companies                  
Sundsvall 76 89 165 55   75 84 159 53
Malmö 192 131 323 52   201 138 339 50
Gothenburg 324 102 426 50   325 142 467 50
Stockholm 408 152 560 52   399 148 547 51
Total – Group 1,664 519 2,183 56   1,675 557 2,232 55
                   

1. Employees under fixed-term employment contracts includes probationary contracts for 68 (52) employees.
2. Fixed-term contracts includes both temporary contracts and other fixed-term contracts.

  2014   2013
Board, CEO and Group management Number of whom men   Number of whom men
Board of Directors 11 5   11 5
CEO 1 1   1 1
Group management, ­excluding CEO 7 3   9 6
           
Age distribution of the total number of employees at 31 December, % 2014 2013
Parent Company    
Under 30 7 6
30–50 67 68
Over 50 26 27
     
Other Group companies    
Under 30 46 45
30–50 48 49
Over 50 6 6
     
  2014   2013
Pay, remuneration, social security and pension costs, SEK 000s Board, CEO and Group management Other
employees
  Board, CEO and Group management Other
employees
Parent Company          
Pay and remuneration 15,679 332,298   19,161 320,495
Social security expenses 6,052 113,930   7,448 109,771
Pension costs 4,040 41,640   5,064 40,349
Total 25,771 487,868   31,673 470,615
           
Other Group companies          
Pay and remuneration 2,534 336,918   3,131 330,283
Social security expenses 994 97,327   1,198 96,269
Pension costs 687 18,621   753 18,196
Total 4,215 452,866   5,082 444,748
           
           
Group          
Pay and remuneration 18,213 669,216   22,292 650,778
Social security expenses 7,046 211,257   8,646 206,040
Pension costs 4,727 60,261   5,817 58,545
Total 29,986 940,734   36,755 915,363
           

Directors’ emoluments

  Board fees   Audit Committee   Remuneration Committee    
Fees and other remuneration paid to the Board, SEK 000s 2014 2013   2014 2013   2014 2013    
Anitra Steen, Board Chairman 3501 3501     191 191    
Hans Bergenheim, Board member 120 120   10 10      
Catarina Fritz, Board member 120 120   20 20      
Eva-Britt Gustafsson, Board member 120 120     8 8    
Cecilia Marlow, Board member 120 120   10 10      
Hélène Westholm, Board member       From 17 Nov. 2014
Christer Åberg, Board member 1501 1501        
Frank Åkerman, Board member 120 120   10 10      
Michael Thorén, Board member       Until 17 Nov. 2014
Anders Andersson, Deputy Board member, employee rep.         Until 24 April 2014
Jenny Bengtsson, Board member, employee rep.       Until 24 April 2014
Per Dahlén, Deputy Board member, employee rep.       From 24 April 2014
Henrik Laigård, Deputy Board member, employee rep.       From 24 April 2014
Patrik Lindell, Board member, employee rep.        
Yvonne Lovén, Deputy Board member, employee rep.        
Martina Ravn, Board member, employee rep.        
Jonas Ringqvist, Board member, employee rep.       Board member from 24 April 2014, Deputy Board member from 24 April 2013
Loi Diep, Deputy Board member, employee rep.       Until 24 April 2013
Total 1,100 1,100   50 50   27 27    
                     

1. The amount pertains to invoiced amount and includes VAT.

The Chairman and Directors of the Board receive fees in accordance with the resolution by the Annual General Meeting (AGM). The same applies to the Chairman and Directors on the Audit Committee and the Remuneration Committee. Under the AGM resolution, Board members can invoice their fees as business activities carried out under the respective Board member’s sole trader status or as a company with an additional amount corresponding to the social security expenses that AB Svenska Spel does not have to pay. The amounts stated in the notes marked with a footnote pertain to invoiced amounts and include VAT but not social security expenses.

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 are paid to the directors of subsidiaries and sub-­subsidiaries if the directors are employed in companies in the Svenska Spel Group, that is, executive directors. The Playscan subsidiary has one Board member who is not employed by AB Svenska Spel and who receives fees for Board work, that is, a non-executive director.

Remunerations and terms for senior executives

  Salary/remuneration   Benefits   Pension costs1    
Salary and other remuneration to senior executives, SEK 000s 2014 2013   2014 2013   2014 2013    
Lennart Käll, CEO and President 3,906 3,815   20 803   1,138 1,097    
Marie Loob, CFO and Executive Vice President 1,593 1,528   74 71   449 434    
Kristina Askstedt, Manager Customer Interaction Business Area 580   5   181   From 1 Sep. 2014
Marie Avander, Acting Communications Director 545 1,440   32 79   173 469   Until 14 Jan. 2014, Manager Vegas Result Area. From 1 Sep. 2014, Acting Communications Director
Anna Björklund, HR Director 1,488 1,446   71 77   473 438    
Per Jaldung, Manager Business Area Casino Cosmopol 1,564 1,544   88 90   514 464    
Jörgen Olofsson, IT Manager 1,479 1,493   71 34   429 394    
Peter Zäll, Manager Business Area Retail 2,032 2,122   93 37   529 589   From 15 Jan. 2014. Previously Result Area Manager, Sports Games & Lotteries
Olle Axelsson, Communication Director 1,270 460   84 24   379 187   From 30 Sep. 2013 until 31 Aug. 2014
Annika Ferm, Communication Director 2,0242   43   186   Until 10 Jan. 2013 with her last day of employment being 10 July 2013
Peter Jannerö, Chief Strategy Officer 54 1,303   5   12 279   Until 14 Jan. 2014
Johan Lindvall, Parent Brand Manager 1,4042 874   9 81   128 181   Until 14 Jan. 2014 with his last day of employment being 31 Aug. 2014
Bengt Palmgren, Chief Legal Counsel 1,376   71   670   Until 31 Oct. 2013
Zenita Strandänger, Acting Communications Director 622   3   140   From 10 Jan. 2013 until 30 Sep. 2013
Anders Örnulf, Acting Manager Customer Interaction Business Area 670   4   149   From 15 Jan. 2014 until 31 Aug. 2014
Total 16,585 20,047   551 695   4,554 5,528    
                     
Other senior executives                    
Andreas Holmström, CEO Playscan AB 925 965   10 7   173 150   From 18 Feb. 2013
Ann-Sofie Olsson, CEO Playscan AB 578   2   139   Until 17 Feb. 2013 with her last day of employment being 20 May 2013
Total 925 1,543   10 9   173 289    
                     

1. Pension costs include possible salary sacrifice to pension.
2. The amount includes severance pay.
3. Correction of previously unreported housing allowance.

Senior executives

Those who at any time are part of the team of "senior executives" are determined by the Remuneration Committee under the application of the provisions stipulated in Chapter 5, Section 20 of the Annual Accounts Act (1995:554). 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.

Guidelines, nomination process, decisions and monitoring

Remuneration principles for executives were adopted by the AGM on 24 April 2014 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 remuneration to senior executives should be reasonable and well balanced. Remuneration should be competitive, have a ceiling, be appropriate and contribute to sound ethics and corporate culture.

The decision on employment terms for the President of the Parent Company is prepared by the Remuneration Committee and decided by the Board. Employment terms for other senior executives who report to the CEO are decided 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 2014. Senior executives have the option of exchanging part of 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.

President and CEO

Lennart Käll, the President and CEO of AB Svenska Spel, received salary and benefits of SEK 3,927,000 in 2014. Lennart Käll’s pension premiums amounted to SEK 1,138,000 in 2014. 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 period of six months applies. In the event that notice is given by the Company, severance pay is paid out for a maximum of 18 months. The severance pay is paid monthly with no supplement for pension or benefits. Should new employment be secured or income received from business activities, severance pay from the company that initiated the termination is reduced by an amount corresponding to the new income during the severance-pay period. Severance pay is never paid past the age of 65.

Other senior executives within the Group management

For other senior executives within the Group management, pensions are paid in line with the ITP plan, with a retirement age of 65. On notice of termination, a mutual notice period of six months applies. In the event that notice is given by the Company, severance pay corresponding to a maximum of 18 months’ salary is paid. The severance pay is paid monthly with no supplement for pension or benefits. Should new employment be secured or income received from business activities, severance pay from the company that initiated the termination is reduced by an amount corresponding to the new income during the severance-pay period. Severance pay is never paid past the age of 65.

Other senior executives

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

Other employees

Employees of the Svenska Spel Group receive remuneration in the form of fixed basic salaries, benefits and pensions under collective agreements. Variable remuneration is paid to employees for work performed during, for example, unsociable working hours. Bonus-based remuneration or remuneration in the form of financial instruments is not paid.

Commitments for defined-benefit old-age pensions and family pensions (alternative family pension) under the ITP 2 plan for salaried employees in Sweden are covered through insurance with Alecta. According to a statement from the Swedish Financial Reporting Board UFR 3, Classification of ITP plans secured through insurance with Alecta, this is a multi-employer defined-benefit plan. For the 2014 financial year, the Company has not had access to the requisite information to allow reporting of its proportional share of the plan’s obligations, plan assets and costs, which means that it was not possible to report the plan as a defined-benefit plan. Accordingly, the ITP 2 pension plan that is secured through an insurance in Alecta is reported as a defined-contribution plan. Premiums for the defined-benefit old-age pensions and family pensions are calculated on an individual basis and are influenced by items including salary, previously earned pension entitlements and remaining period of service. Expected fees for ITP 2 insurances with Alecta for the next reporting period total SEK 26 million (24). The Group’s share of total fees under the plan and the Group’s share of the total number of active plan members amounted to 0.163% and 0.138% respectively (0.149 and 0.138 respectively).

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