Earlier this year, Göran Lindén,
the current President and CEO of Swedish Match, informed the
Chairman of the Board that he wished to resign operational
responsibility for the company prior to the 1999 Annual General
Meeting.
In view of this request, the Board
has today appointed Lennart Sundén to be President and CEO,
effective November 1, 1998. Lennart Sundén, who is a Master of
Engineering and of Business Administration, is 46 years old and
currently employed by Electrolux, where he has worked for more
than 20 years. Following some 10 years in which he held senior
executive posts in the white goods sector, Mr Sundén has had
global responsibility for the Electrolux Group’s
vacuum-cleaner product line for the past five years.
Göran Lindén will continue to be
employed by Swedish Match until June 30, 1999, in order to assist
in the introduction of the new President among other things. As
specified in his contract of employment, he will not receive any
employment benefits or other remuneration following termination
of his employment. Since employment will cease prior to the
normal age of retirement, which is 60 in Göran Lindéns case,
his pension will be reduced from the age of 60 and 65,
respectively, to take the limited period of pension qualification
into account.
Göran Lindéns resignation as
President and CEO does not affect his assignment as a member of
the Board of Swedish Match AB.
- I wanted to retire from
operative management responsibility in order to devote more time
for Board Assignments, which I very much enjoy and which
interests me a lot Göran Lindén says.
- This is also the right time to
leave office, after a heavy workload in connection with the stock
exchange listing and organizational changes among other things.
The Chairman of the Board, Bernt
Magnusson says – Göran Lindén has done an exceptional job
at Swedish Match, particularly in view of the heavy demands with
reference to the stock exchange listing and the integration of
the lights and tobacco operations. I am convinced that Göran has
considered this decision very carefully, and I would like to
thank him for his important contribution to the company over the
years. I wish him every success in the future. Lennart Sundén is
very well qualified for the post of President and CEO of Swedish
Match. His long international experience and his considerable
expertise in the consumer product area will be a great asset to
the company.
Lennart Sundén will be receiving
a fixed annual salary of 3 MSEK at 1999 rates of pay. In addition
he may receive a bonus corresponding to not more than 35% of
salary. He will also be eligible for the option program which was
recently implemented. Termination of employment calls for six
months’ notice on Sundéns part and 12 months on the part of
the company. If the company terminates employment, severance pay
may be payable for a maximum of 24 months after termination of
employment. Other remuneration received during this period is
deducted from this amount, but this deduction may not be more
than 50% of severance pay. Full pension is payable at a rate of
70% of pensionable salary from the age of 60 to 65, and 45% after
the age of 65. Full pension is conditioned by employment until
the age of 60 and a qualification period of at least 10 years. In
other cases, the pension is reduced in relation to the qualifying
period. In addition, Lennart Sundén is entitled to customary
terms of employment in line with company policy.