Incentive program

Variable remuneration

Variable remuneration paid to the President and CEO and other senior executives is based on operating income and the return on capital employed. The maximum outcome is 40% of base salary. At the same time, the relevant profit centre must report positive earnings.
  In 2010, the outcome for the President and CEO was 40% of base salary (40) and for other senior executives an average of 40% of base salary (30).
  The President and CEO also receives variable remuneration based on Nolato’s share price performance. The starting price is SEK 48 per share, which will be compared to the average price during Q1 2011. The increase in value per share will be multiplied by a factor of 150,000 to determine the remuneration.
  The remuneration has been maximised at an amount corresponding to 50% of gross salary in the form of the regular monthly salary which the President and CEO has received during the period. This scheme is charged as expenses linearly in line with the vesting period (2008-2011), and is valued according to the Black & Scholes model, taking into account the terms and conditions of the scheme. This remuneration can only be awarded to the President and CEO after the end of the maturity period.
  The cost of the scheme for the year (including employer payroll fees) has been charged to income at a rate of SEK 5,143,000 (1,278,000). At the end of 2010, the total value of this bonus scheme was deemed to be SEK 6,491,000.