The current bonus programme is structured such that the bonus paid also depends on the employee’s position in the Group. The maximum pay-out for the share price related part varies between a minimum of four (4) months’ salary and a maximum of four (4) years’ salary. The maximum pay-out for the stay-on bonus varies between a minimum of three (3) months’ salary and a maximum of nine (9) months’ salary.
All payments made under the bonus scheme are made in arrears after the end of the relevant three-year period. The bonus scheme is designed such that the employee must remain employed in the Group throughout the three-year period in order to participate in the bonus arrangements. Moreover, 1/3 of the stay-on bonus is paid out in each of the three years following the end of the three-year period (pay-out period). In the event of termination of employment during the pay-out period, the right to that portion of the stay-on bonus that has not yet been paid lapses.
As at 31 December 2008, 23 employees are included in the current bonus scheme. For 17 employees who joined the bonus scheme with effect from 1 February 2008 a share price of SEK 47.50 is required in order for the share price related bonus to be paid. To receive the maximum share price related bonus, the company’s share price at the end of the qualification period (31 January 2011) must be SEK 105.32, which is the ceiling on the share price related bonus. The share price related bonus thus increases linearly between SEK 47.50 and SEK 105.32 in line with changes in the share price.