Compensation committee

• guidelines to be proposed to the Annual General Meeting, for the determination of salaries and other compensation, as well as other terms of employment for the Company’s President and other members of Group Management Team;
  
• any share-related incentive programs;
• salary and other compensation as well as other terms of employment for the Company’s President, including annual salary review;
  
• other compensation and employment term matters which, by law or other regulations, the Swedish Code of Corporate Governance or established practice shall be resolved by the General Meeting or the Board of Directors;
• rules stipulated for the Swedish profi tsharing-system in Sweden, and
• approval of significant engagements outside the Company with respect to the President.
  

• calculation and payment of variable salary to the Company’s President and other members of the Group Management Team;
• payment of funds to the Company’s profit-sharing system in Sweden, pursuant to the rules stipulated by the Board for the Swedish profit-sharing system;
  
• salary and other compensation which, within the framework of the guidelines resolved by the Annual General Meeting, shall be paid to, and other terms of employment that shall apply for, members of Group Management Team other than the President, including performance criteria, and targets in any long term incentive plan;
• approval of significant engagements outside the Company with respect to other members of the Group Management Team than the President; and
  
• study fees paid to the employee representatives on the Board.
  

In addition, the Committee shall monitor and evaluate

• programs for variable remuneration, both ongoing and those that have ended during the year, for the Group Management Team, and
  
• the application of the guidelines for remuneration that the Annual General Meeting is legally obliged to establish, as well as the current remuneration structures and levels in the Company.

The Committee’s Chairman kept the Board of Directors informed on an ongoing basis about the Committee’s work and decisions during the year.

The Committee shall meet as often as necessary but at least twice annually. There were three meetings held during 2010.

During 2010, the Committee devoted special attention to determination of variable compensation for 2009 to be paid in 2010, proposals to the Board concerning adjustments to the President’s salary and variable compensation for 2011 and determination of salaries and variable compensation for other members of the Group Management Team for 2011. In addition, the Committee submitted a proposal to the Board, prior to the 2010 Annual General Meeting, to have the Company issue call options in respect of the 2009 options program and a proposal for guidelines for the determination of salary and other remuneration paid to the President and other members of Group Management Team.