Compensation Guidelines

The 2010 Annual General Meeting decided that compensation to the President and other members of the Company’s senior management shall comprise fixed salary, possible variable salary components, other benefits such as company car, and pension. The total compensation package shall be on market terms and competitive on the employment market on which the executive works. Fixed salary and variable salary components shall be related to the executive’s responsibilities and powers. The variable salary components shall be based on results as compared with defined and measurable targets and shall be subject to a cap in relation to the fixed salary. Variable salary components shall not be included in the basis for computation of pension, except in those cases where so provided in the rules of a general pension plan (e.g. the Swedish ITP plan). As regards senior executives outside Sweden, all or parts of the variable salary components may be included in the basis for pension computation due to legislation or practice on the local market. The Board shall be entitled to derogate from the guidelines where special reasons exist in an individual case. For more detailed information regarding current compensation, reference is made to Note 2.

The Company had as of December 31, 2010 no share or share-price related incentive programs.

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Corporate governance
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