Remuneration to Senior Management in Securitas AB

Guidelines for Remuneration to Senior Management in Securitas AB

The Annual General Meeting 2016 adopted guidelines for remuneration in accordance with the following:

The fundamental principle is that remuneration and other terms of employment for senior management shall be competitive and in accordance with market conditions, in order to ensure that the Securitas Group will be able to attract and keep competent senior management employees.

The total remuneration to senior management shall consist of a fixed basic salary, variable remuneration, pensions and other benefits. In addition to a fixed annual salary the Group Management may also receive variable remuneration, which shall be based on the outcome in relation to financial goals within the individual area of responsibility (Group or division) and which shall agree with the interest of the shareholders. The variable remuneration shall amount to a maximum of 60 percent of the fixed annual salary for the President and CEO and a maximum of 42 – 200 percent of the fixed annual salary for other individuals of the Group Management. If cash payment of variable remuneration has been effected on grounds later proven to be obviously inaccurate, the company shall have the possibility to reclaim such paid remuneration.

The undertakings of the company as regards variable remuneration to the Group Management may, at maximum outcome during 2016, amount to a total of MSEK 79. Information on previously decided remuneration which has not yet been paid can be found in Note 8 of the Annual Report for 2015.

The pension rights of senior management employees shall be applicable as from the age of 65 at the earliest and the entire Group Management shall be subject to defined contribution pension plans for which insurance premiums are transferred from the individual's total remuneration and paid by the company during the term of employment. Variable compensation shall not qualify for pension purposes unless local regulations provide otherwise.

Other benefits, such as company car, special health insurance or occupational health service shall be provided to the extent this is considered customary for senior management employees holding equivalent positions on the employment market where the senior management employee is active.

At dismissal, the notice period for all senior management employees shall amount to a maximum of 12 months with a right to redundancy payment after the end of the notice period, equivalent to a maximum of 100 per cent of the fixed salary for a period not exceeding 12 months. At resignation by a senior management employee, the notice period shall amount to a maximum of six months.

These guidelines shall apply to individuals who are included in the Group Management during the term of application of these guidelines. The guidelines shall apply to agreements entered into after the adoption by the Annual General Meeting, and to changes made in existing agreements after this date. The Board shall be entitled to deviate from the guidelines in individual cases if there are particular grounds for such deviation.

Remuneration 2015

KSEK Base salary/fee Other benefits Variable compensation  (3) Pension Total remuneration
Melker Schörling, Chairman of the Board (1)  1,300  -  -  -  1,300
Carl Douglas, Vice Chairman  750  -  -  -  750
Fredrik Cappelen (1)  625  -  -  -  625
Marie Ehrling (1)  750  -  -  -  750
Annika Falkengren (1)  550  -  -  -  550
Fredrik Palmstierna  500  -  - -  500
Sofia Schörling Högberg  500  -  - -  500
Subtotal Board of Directors  4,975  -  -  -  4,975
President and CEO (2)  14,450  90 7,800 4,261  26,601
Other members of Group Management (4) 54,171 3,540 52,452 8,479  118,642
Subtotal President and CEO and Group Management 68,621 3,630 60,252 12,740 145,243
Total 73,596 3,630 60,252 12,740 150,218

Above information refers to full year remuneration for the current Group Management, unless stated otherwise. The Board of Directors has no pension benefits.

(1) Including remuneration for committee work.
(2) Whereof KSEK 1,200 refers to temporary remuneration and KSEK 360 refers to pension cost for additional responsibility as Divisional President for Security Services Europe during 2015.
(3) Refer to the cost for 2015 for Securitas incentive scheme for cash and share-based bonus, see also separate table for the share-based part.
(4) The compensation for one member who joined the Group Management during 2015 refers as from this date.

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