G4 Personnel information and remuneration of management
Average number of employees, full-time equivalent
|
2023 |
2024 |
||
|---|---|---|---|---|
|
Number |
Women % |
Number |
Women % |
Sweden |
5,472 |
28 |
5,325 |
29 |
Rest of Europe |
12,828 |
21 |
12,599 |
22 |
Total Europe |
18,300 |
23 |
17,923 |
24 |
North America |
6,364 |
22 |
6,317 |
20 |
South America |
2,633 |
19 |
2,709 |
20 |
Africa, Middle East |
3,049 |
20 |
3,219 |
20 |
Asia |
8,156 |
16 |
8,708 |
18 |
Australia |
2,184 |
20 |
2,286 |
20 |
Total |
40,686 |
21 |
41,162 |
21 |
Wages, salaries and other remuneration and social costs
|
2023 |
2024 |
|---|---|---|
Wages, salaries and other remuneration |
–26,323 |
–26,798 |
Social costs |
–3,384 |
–3,455 |
Pension costs |
–1,975 |
–1,596 |
Total |
–31,682 |
–31,850 |
A total of SEK 70 million (34) of the Group’s pension costs relates to Boards and presidents. The Group’s pension liability to these persons amounted to SEK 191 million (189).
Gender distribution in senior management
% |
2023 |
2024 |
|---|---|---|
Gender distribution in senior management |
20 |
19 |
Other senior executives |
26 |
26 |
Wages, salaries and other remuneration by market area
|
2023 |
2024 |
|---|---|---|
Sweden |
–4,041 |
–3,829 |
Rest of Europe |
–9,521 |
–9,632 |
Total Europe |
–13,562 |
–13,461 |
North America |
–5,694 |
–5,767 |
South America |
–1,045 |
–1,029 |
Africa, Middle East |
–1,351 |
–1,408 |
Asia |
–2,461 |
–2,769 |
Australia |
–2,211 |
–2,365 |
Total |
–26,323 |
–26,798 |
of which, to Boards of Directors and presidents |
|
|
Salaries and other remuneration |
–1,050 |
–971 |
of which, variable salary |
–171 |
–157 |
Remuneration to the board of directors
Fees to the Chairman and other external Board members are paid in accordance with the resolution at the Annual General Meeting. No Board fees are paid to the President and the employee representatives. In accordance with the resolution of the 2024 Annual General Meeting, the total fee to the external Board members elected at the Meeting amounts to in total SEK 7,800,000 on an annual basis.
|
2023 |
||||||
|---|---|---|---|---|---|---|---|
SEK |
Board fee |
Audit Committee fee |
Remuneration Committee |
Acquisition and Divestitures Committee |
Total Board and Committee fee |
||
Chairman of the Board (Johan Molin) |
–2,875,000 |
–192,000 |
–161,000 |
–218,000 |
–3,446,000 |
||
Jennifer Allerton1) |
–770,000 |
– |
– |
– |
–770,000 |
||
Claes Boustedt |
–770,000 |
–338,000 |
– |
–161,000 |
–1,269,000 |
||
Marika Fredriksson |
–770,000 |
– |
– |
– |
–770,000 |
||
Helena Stjernholm |
–770,000 |
–192,000 |
–127,000 |
–161,000 |
–1,250,000 |
||
Kai Wärn |
–770,000 |
– |
–127,000 |
– |
–897,000 |
||
Andreas Nordbrandt |
–770,000 |
– |
– |
– |
–770,000 |
||
Total |
–7,495,000 |
–722,000 |
–415,000 |
–540,000 |
–9,172,000 |
||
|
|||||||
|
2024 |
||||||
|---|---|---|---|---|---|---|---|
SEK |
Board fee |
Audit Committee fee |
Remuneration Committee |
Acquisition and Divestitures Committee |
Total Board and Committee fee |
||
Chairman of the Board (Johan Molin) |
–3,000,000 |
–200,000 |
–167,000 |
–226,000 |
–3,593,000 |
||
Claes Boustedt |
–800,000 |
–352,000 |
– |
–167,000 |
–1,319,000 |
||
Marika Fredriksson |
–800,000 |
– |
– |
– |
–800,000 |
||
Andreas Nordbrandt |
–800,000 |
– |
– |
– |
–800,000 |
||
Susanna Schneeberger1) |
–800,000 |
– |
– |
– |
–800,000 |
||
Helena Stjernholm |
–800,000 |
–200,000 |
–132,000 |
–167,000 |
–1,299,000 |
||
Kai Wärn |
–800,000 |
– |
–132,000 |
– |
–932,000 |
||
Total |
–7,800,000 |
–752,000 |
–431,000 |
–560,000 |
–9,543,000 |
||
|
|||||||
President and other senior executives
Guidelines for remuneration
For information on the current guidelines for remuneration of senior executives, adopted by the 2024 Annual General Meeting, please refer to the Directors' report.
President and CEO
The Sandvik President and CEO, Stefan Widing, was paid an annual fixed salary of SEK 16,420,272 and received a fringe benefit value of a car provided by the company. In addition, an annual variable cash based salary of maximum 75 percent of the fixed salary is payable. The variable salary for 2024 amounted to SEK 1,477,824 being 12 percent of the maximum amount.
Stefan Widing is entitled to retire at age 65. A pension premium of 37.5 percent of his annual fixed salary is reserved annually.
In the event of termination of employment by the company, Stefan Widing has a notice period of 12 months and 12 months’ severance pay.
Other senior executives
The members of the Group Executive Management in Sweden receive an occupational pension plan limited to 35 percent of their annual base salary. One member of the Group Executive Management based in Sweden carries an additional legacy pension plan, where a supplement of 5 percent of the salary portions in excess of 7.5 income base amounts applies. The pension plan entails savings to pension, contributions for disability pension, insurance and supplementary disability and survivor’s pension. One member of the Group Executive Management based in Switzerland is covered by a Swiss pension plan amounting to 21 percent of annual base salary, whereof 75 percent is paid by the company and 25 percent by the employee, and one member based in the UK is covered by a UK salary supplement plan amounting to 12 percent of the annual base salary. The retirement age is minimum 62.
Severance pay is paid in the event that the company terminates employment. The severance pay equals 6–12 months fixed salary in addition to the notice period, which is 6–12 months. Any other income from employment may be deducted from the severance pay.
External remuneration market data for benchmarking is used as guidance. No sign-on bonus nor other extra incentive payments have been paid in 2024.
Position |
Fixed salary |
Annual variable salary3) |
Other benefits4) |
Long-term variable salary5) |
Pension costs6) |
||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
President and CEO |
–15,800,6411) |
–9,294,494 |
–125,462 |
–8,922,783 |
–5,344,644 |
||||||||||||||
Other senior executives7) |
–43,634,9052) |
–12,926,478 |
–1,417,873 |
–14,002,256 |
–12,145,441 |
||||||||||||||
Total |
–59,435,546 |
–22,220,972 |
–1,543,335 |
–22,925,040 |
–17,490,085 |
||||||||||||||
|
|||||||||||||||||||
Position |
Fixed salary |
Annual variable salary3) |
Other benefits4) |
Long-term variable salary5) |
Pension costs6) |
||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
President and CEO |
–16,748,6781) |
–1,477,824 |
–159,196 |
–5,465,050 |
–7,345,166 |
||||||||||||||
Other senior executives7) |
–45,582,3342) |
–4,887,342 |
–1,426,931 |
–9,562,355 |
–13,433,296 |
||||||||||||||
Total |
–62,331,012 |
–6,365,166 |
–1,586,127 |
–15,027,405 |
–20,778,462 |
||||||||||||||
|
|||||||||||||||||||
Long-term incentive programs (LTI)
Share-based incentive program 2021–2024
The 2021–2024 Annual General Meetings approved the Board’s proposal to adopt a performance share program for each year for a maximum 350 senior executives and key individuals in the Sandvik Group, divided into four categories. For all participants, a personal investment is required in each separate program and the programs encompass a grant of a maximum total of 4,737,288 shares.
All program participants have invested in Sandvik shares (“investment shares”), up to an amount corresponding to 10 percent of their fixed annual pre-tax salary at the time of the investment.
Performance shares
In LTI 2021–2024, provided certain performance targets are met, Sandvik shares may be allotted (“performances shares”). The maximum number of performance shares that may be allotted for each acquired investment share depends on the category to which the participant belongs.
The number of performance shares that will finally be allotted to the participant for each acquired investment share is dependent on the development of the Sandvik Group adjusted Earnings Per Share (“EPS”) during the financial year that the investment shares were acquired, compared to adjusted EPS for the previous financial year.
In January 2021–2024 respectively the Board of Directors established the levels regarding adjusted EPS for the performance year in question that had to be attained for allotment of a certain number of performance shares.
Performance outcome 2020–2023
LTI 2021: Performance shares will be allotted since the performance targets set by the Board of Directors were met. The LTI adjusted EPS for the financial year 2021 amounted to SEK 11.07.
LTI 2022: Performance shares will be allotted since the performance targets set by the Board of Directors were met. The LTI adjusted EPS for the financial year 2022 amounted to SEK 12.89.
LTI 2023: Performance shares were partly allotted since the performance targets set by the Board of Directors were partly met. The adjusted EPS for the financial year 2023 amounted to SEK 14.04.
LTI 2024: No performance shares were allotted since the performance targets set by the Board of Directors were not met. EPS for the financial year 2024 amounted to SEK 13.11. This means that there will be no allotment of shares under LTI 2024.
The number of allotted performance shares under the 2021–2024 LTI programs for the President and other members of the Group Executive Management on December 31, 2024, corresponds to the number of outstanding performance shares at year-end.
The allotments of performance shares in ongoing programs requires continuous employment and that all investment shares are held during a period of three years from the acquisition of the investment shares.
Costs for the programs
The following IFRS 2 provisions were established during the year:
For LTI 2022 SEK 49.0 million (excluding social costs), of which SEK 9.7 million for the President and CEO and other Senior Executives.
For LTI 2023 SEK 39.7 million (excluding social costs), of which SEK 5.3 million for the President and CEO and other Senior Executives.
For LTI 2024, no IFRS2 provisions were made since the performance targets set by the Board of Directors were not met.
Preparation and decision-making process
The Board’s Remuneration Committee prepares issues relating to the Group Executive Management’s remuneration. The Committee met four times during the year. Items dealt with included the distribution between fixed and variable salary, the magnitude of any pay increases and both the short-term and long-term variable incentive programs.
The Board discussed the Remuneration Committee’s proposals and made a decision, using the Committee’s proposal as a basis. Based on the Remuneration Committee’s proposals, the Board decided on the remuneration of the President for 2024. The President decided on remuneration to other senior executives after consultation with the Remuneration Committee. The Remuneration Committee performed its task supported by expertise on remuneration levels and structures. For information on the composition of the Committee, refer to the Corporate Governance Report.
Assumptions |
Program 2021 |
Program 2022 |
Program 2023 |
Program 2024 |
||
|---|---|---|---|---|---|---|
Share price, SEK |
219.40 |
201.60 |
198.35 |
238.10 |
||
Present value of forecasted future dividends, SEK1) |
16.70 |
17.32 |
16.77 |
18.09 |
||
Risk-free interest rate, % |
–0.22 |
0.40 |
3.23 |
3.74 |
||
|
||||||
|
2021 |
2022 |
2023 |
2024 |
|---|---|---|---|---|
Outstanding at beginning of year |
784,450 |
1,135,985 |
603,901 |
– |
Allotted during the period |
– |
– |
– |
1,222,888 |
Vested during the year |
–763,942 |
– |
– |
– |
Forfeited during the year |
–20,508 |
–112,775 |
–41,718 |
–1,222,888 |
Transferred during the year |
– |
– |
– |
– |
Outstanding at year-end |
– |
1,023,210 |
562,183 |
– |
Theoretical value when allotted, SEK |
202.70 |
184.28 |
181.58 |
220.01 |
|
2021 |
2022 |
2023 |
2024 |
|---|---|---|---|---|
Outstanding at beginning of year |
153,631 |
212,791 |
96,571 |
– |
Allotted during the period |
– |
– |
– |
198,605 |
Vested during the year |
–134,992 |
– |
– |
– |
Forfeited during the year |
–18,639 |
–16,609 |
– |
–198,605 |
Transferred during the year |
– |
– |
872 |
– |
Outstanding at year-end |
– |
196,182 |
97,443 |
– |
Theoretical value when allotted, SEK |
202.70 |
184.28 |
181.58 |
220.01 |
§ Accounting principles
Share-based payments refer to remuneration to employees in accordance with employee share saving programs.
The costs for the employee performance shares are expensed as an employee expense (excluding social costs) over the vesting period and are recognized directly against equity. The amount recognized is continuously revised throughout the vesting period of each program. Social costs are expensed during the vesting period of each program based on the change in value of the employee performance shares.
The share-based program, performance share consists of the rights to provide entitlement to shares subject to the same conditions and if goals relating to operating performance are achieved. The amount recognized as an expense is adjusted to reflect the actual number of shares vested.
In order to meet its commitments under the share saving program, Sandvik has entered into an equity swap agreement with a financial institution. Under the agreement, the financial institution undertakes to distribute Sandvik shares to participants in the program when the date for allotment occurs in accordance with the terms and conditions of the program.
The fair value of the Sandvik share when the swap agreement was signed is recognized as a financial liability and as a reduction of equity in accordance with IAS 32. Social costs relating to share-based payments to employees are expensed over the accounting periods during which the services are provided. The charge is based on the fair value of the options at the reporting date. The fair value is calculated using the same formula as that used when the options were granted.