The 2015 AGM approved guidelines for remuneration of senior executives in line with the guidelines adopted by the 2014 AGM, and approved variable remuneration of senior executives in the form of cash payment with the adjustment that no long-term share-based incentive program (LTIP) was proposed. No grants in accordance with the previously approved LTIP 2014 were made.
The goal is that Eniro will offer remuneration that is in line with the going rate in the market, consisting of the following components:
Fixed salary is based on the individual executive’s area of responsibility, expertise and experience. Variable salary consists of cash payment, limited to 40% of the executive’s fixed salary (50% for the CEO). The targets for variable salary are to be determined by the Board of Directors starting on January 1, 2015, and shall mainly pertain to the Group’s financial performance and be measured in relation to the Group’s revenue and EBITDA. The Board of Directors determines the variable salary based on annual evaluations of the individual executive’s achievement of the stated targets and goals. Payment of part of the variable salary component shall be conditional upon the long-term, sustainable achievement of the underlying targets. The company retains the right to demand reimbursement of variable salary if the award has been based upon information that subsequently proves to be clearly incorrect.
Eniro’s pension policy is based on either an individual occupational pension plan or a defined contribution pension plan amounting to a maximum of 35% of the executive’s fixed salary. Upon termination of employment at the company’s initiative, a notice period of a maximum 12 months applies. Other remuneration and benefits, such as a company car and disability insurance, shall be in line with the going rate in the market. The Board may depart from the guidelines in individual cases if special reasons exist.
Eniro’s CEO, Stefan Kercza, has a notice period of six months by his own initiative and 12 months in the event the company serves notice. In the event the company serves notice, he is entitled to an additional six months’ severance pay, which may be reduced in the event the CEO takes up new employment elsewhere. The company and the other members of Group Management have a mutual notice period of six months.
Further information on remuneration for 2015 is provided the Annual Report 2015, see note 24 on page 71.