• Skip to main content
  • Go to main navigation
  • Go to language selector
SearchFree text

Swedish Match
SWMA Jun 28, 2022
5:29 PM CET
+ 3.0 % 104.45 SEK
The share
  • svenska
Close
  • Swedish Match websites

    • Image Bank
    • Swedish Match Brasil
    • Swedish Match Industries
    • Snus and Match Museum
  • Brand websites

    Smokefree

    • Swedish Match e-commerce service (SE)
    • Swedish Match e-commerce service (CH)
    • General (US)
    • Longhorn (US)
    • Pinkerton Tobacco
    • ZYN

    Lights

    • Cricket
    • Nitedals
    • Redheads
  • Other

    • Swedish Match Denmark
    • The Solstickan Foundation (SE)
  • Our company More Less

    Our company

    • Our company in brief More Less
      • CEO comment
      • Fact sheet
    • Vision and strategy More Less
      • Financial strategy
      • Sustainability strategy
      • Acquisitions and divestments
    • Markets More Less
      • Our product categories and markets
      • Trends
    • Organization More Less
      • Operating locations
      • Employees
    • Company history More Less
      • Svenska Tobaks AB
      • Svenska Tändsticks AB
      • Swedish Match AB
    • Corporate brand

    CEO comment

  • Our business More Less

    Our business

    • Smokefree More Less
      • Market development More Less
        • Smokefree products in the US
        • Smokefree products in Scandinavia
        • Smokefree products in Other markets
      • Nicotine products and regulations
      • History of snus
      • Snus production
      • Ingredients in snus
    • Cigars More Less
      • Market development
      • History of cigars
    • Lights More Less
      • Market development
    • Risk management
    • Outlook and risk factors

    Snus production

  • Corporate Governance More Less

    Corporate Governance

    • Annual General Meeting More Less
      • Annual General Meeting More Less
        • AGM 2021
        • AGM 2020
        • AGM 2019
      • Nominating Committee
      • AGM address and minutes
      • Dividend and financial policy
      • Auditors
      • Articles of association
    • Committees More Less
      • Remuneration Committee
      • Audit Committee
      • Disclosure Committee
    • Board of Directors More Less
      • About the Board
      • Activities of the Board of Directors
      • Compensation to Board
    • Management More Less
      • About the management
      • Guidelines for executive remuneration
      • Management compensation More Less
        • Incentive plans
    • Insider shareholding
    • Corporate Governance reports More Less
      • Internal control
    Participants at the AGM

    Annual General Meeting

  • Sustainability More Less

    Sustainability

    • Sustainability at Swedish Match More Less
      • Strategy and organization
      • Materiality assessment
      • Other topics outside our focus areas
      • Our contribution to the UN SDGs More Less
        • UN SDGs aligned with our focus areas
        • UN SDGs beyond our focus areas
    • Value chain
    • Code of Conduct More Less
      • Group Principles on Communication
      • Group Principles on Environmental Management
      • Supplier Code of Conduct
    • Sustainable Tobacco Program
    • Improve public health
    • Ensure ethical business practices
    • Reduce environmental impact
    • Human rights in our supply chain
    • Equal opportunity
    • Sustainability reporting More Less
      • Sustainability reporting archive
    • Sustainability FAQ
    • Sustainability contacts
  • Investors More Less

    Investors

    • The share More Less
      • Per share data
      • Shares outstanding
      • Share capital development
      • Share holdings More Less
        • Largest shareholders
      • Dividend information
      • Analysts and estimates
      • Indicies
    • Share split
    • Follow our journey
    • Calendar
    • Presentations More Less
      • Webcasts and audiocasts
    • Financial reports More Less
      • Interim reports
      • Annual reports More Less
        • Annual report 2021
    • Financial tables More Less
      • Income statement
      • Balance sheet
      • Cash flow analysis
      • By product segment More Less
        • Sales
        • Operating profit
        • Operating margin
      • Key ratios
      • Statement of comprehensive income
    • Debt information More Less
      • Debt sources of financing
      • Debt programs
      • Outstanding bonds
      • Credit rating
      • Financial risks More Less
        • Sensitivity analysis
    • IR contacts
    • Information on cash offer announcement by PMI
  • Media More Less

    Media

    • Press releases and news
    • Images More Less
      • Swedish Match logotype
    • Videos
    • Pressroom
    • Media contacts
  • Snus and health More Less

    Snus and health

    • Our standpoint
    • The Swedish Experience
    • Research on snus
    • Smoking cessation
    • GOTHIATEK® More Less
      • GOTHIATEK® standard
    • Snus and the Swedish Food Act
    • Nicotine More Less
      • Nicotine labeling of Swedish Match products
      • Snus, nicotine and nicotine addiction
    • Tobacco use More Less
      • Tobacco use in figures
    GOTHIATEK® Quality standard

    Swedish Match quality standard

  • Career More Less

    Career

    • Employee strategy
    • Our culture More Less
      • Employee surveys
    • Work environment
    • Diversity and non-discrimination
    • Competence development
    • Compensation and benefits
    • What we do
    • Meet our employees
    • Vacant positions
    • Student
    • HR contacts

    Vacant positions

Our websites
Language:
  • English
  • svenska
Corporate Governance
  • Annual General Meeting
  • Committees
  • Board of Directors
  • Management
    • About the management
    • Guidelines for executive remuneration
    • Management compensation
      • Incentive plans
  • Insider shareholding
  • Corporate Governance reports

Management compensation

The total remuneration to the GMT consists of fixed cash salary, variable cash remuneration, pension benefits, other benefits and terms related to termination of employment. 

The guidelines for executive remuneration adopted by the Annual General Meeting on April 2, 2020, are available on the page Remuneration principles.

Remuneration and other benefits to Group Management Team

TSEKFixed salaryVariable salaryOther benefitsPension costsTotalDefined benefit obligations
President 20217,6669,1031592,81319,742–
President 20207,4468,9211402,66719,174–
Other members of Group Management Team 202121,42222,8901,9407,05453,30728,415
Other members of Group Management Team 202024,67130,3632,0217,76564,82061,456
Total 202129,08831,9932,0999,86873,04828,415
Total 202032,11739,2842,16110,43283,99461,456


Comments to the table:

  • At the end of 2021, the Group Management Team consisted of seven persons including the President. The President and three other members of the Group Management Team were employed by the Parent Company and three members were employed by a subsidiary.
  • At the end of 2020, the Group Management Team consisted of eight persons including the President. The President and three other members of the Group Management Team were employed by the Parent Company and four members were employed by a subsidiary.
  • Variable salary refers to accruals charged to the consolidated income statement during the year for short term and long term incentive programs.
  • Other benefits refers to company cars, medical insurance, dental plan, life insurance, club membership and other benefits.
  • Reported pension costs correspond to service costs for defined benefit pension plans and fees relating to defined contribution pension plans (excluding payroll taxes).
  • During 2021 and 2020 no earnings-related compensation (tantiem) has been paid to the Group Management Team.
  • During 2021 and 2020 no severance has been paid to the Group Management Team.

Variable salary

In 2021, the Group Management Team (“GMT”) participated in short and long term incentive programs (variable salary) described under the presentation of the remuneration and other benefits to Group Management Team.

Performance targets for the short-term incentive are determined in the beginning of each year. For 2021, the CEO and heads of corporate functions of the GMT had the same criteria, Group operating profit (weight 75 percent) and Net sales from product segments (weight 25 percent). The Division Presidents had partly the same Group criteria as the CEO and partly criteria linked to the division.

In the three year long incentive program that started in 2019 and ended in 2021, the performance criteria for the CEO and other members of group management were based on Group operating profit (weight 75 percent) and net sales from product segments (weight 25 percent). For the criterion Group operating profit the threshold for payout and target for maximum payout were 14,520 MSEK and 16,809 MSEK respectively and for the criterion net sales from product segments the corresponding numbers were 37,998 MSEK and 43,988 MSEK respectively. The Remuneration Committee established the total weighted performance outcome for the long term program to 100 percent.

In the long term program that started in 2021, the performance criteria for the CEO and other members of the Group Management team is the accumulated Group operating profit (weight 70 percent), the accumulated Group net sales from product segments (weight 20 percent) and reduction in greenhouse gas intensity (weight 10 procent) for the years 2021 to 2023. There will be no pay-out in relation to these criteria unless there is an improvement in relation to the comparable performance of the Group in 2020. The costs for the long term program are expensed during the fiscal year when the compensation is earned based on an estimated outcome. At year end, a final estimate of the year’s cost is calculated based on the actual outcome. Adjustments of previously reported costs for the long term programs are also reported when the estimated outcome is updated for each program during the performance period. As the long term program extends over three years the final result will be established at the end of the three year performance period.

In addition to the programs noted above, GMT members residing in the US also participated in a three-year local program. This local program extends over three years, with a new program starting every second year. Accordingly, this program can generate an outcome every second year. The maximum outcome of this plan corresponds to a fixed annual salary every second year.

In 2021, the eligible participants in the long term incentive program have committed to purchase Swedish Match shares for the total compensation received, net after tax, and to retain these shares for a period not less than two years.

Pensions

President

The President’s retirement age is 62 and he is covered by the Swedish standard retirement plan for white-collar employees (ITP plan) on salary up to 30 times the income base amount. The President’s ITP plan shall be fully funded at age 62. In addition, the Company pays a pension premium amounting to 40 percent of fixed salary above 30 times the income base amount to a defined contribution pension plan.

Other members of Group Management Team

For members of Group Management Team who are residents in Sweden, the retirement age is 62 or 65. Swedish GMT members that are born 1978 or earlier are covered by the Swedish standard retirement plan for white-collar employees (ITP2 plan) on salary up to 30 times the income base amount. In addition, for some of the members, the Company also pays a pension contribution amounting to a maximum of 35 percent of fixed salary above 30 times the income base amount. Swedish GMT members that are born after 1978 are covered by the ITP1 plan, and are not eligible to any additional pension contributions. Members of the GMT who are resident in the US, are covered by a defined benefit pension plan with a normal retirement age of 65.

Other employment conditions

Severance pay etc.

For the Group Management Team including the President, a mutual notice period of maximum of six months applies and a maximum severance payment of 18 months’ fixed salary is payable if the Company terminates the employment contract.

The President and three other members of the Group Management Team are entitled to terminate their employment with the right to receive severance pay in accordance with the above terms if a major organizational change should occur that significantly restricts their position.

Related documents

  • Remuneration report 2021

More information

  • Annual General Meeting
  • AGM address and minutes
  • Annual reports

Share

Share Facebook Share Twitter Share Linkedin

Share this page by email

Incorrect email
Incorrect email
Home / Corporate Governance / Management / Management compensation
Page updated Mar 25, 2022

Contact us

  • IR contacts
  • Media contacts
  • Sustainability contacts
  • HR contacts
  • Consumer contact
  • Web contact

Find us

  • Headquarters
  • Sales office
  • Factory
  • Distribution
  • Store
  • Research & Development
  • All addresses
Map

Corporate headquarters

Phone: +46 10 13 93 000

Sveavägen 44
SE-118 85 Stockholm

Corporate headquarters
Swedish Match

Swedish Match AB
SE-118 85 Stockholm

Phone +46 10 13 93 000
Corporate reg no. 556015-0756
contactus@swedishmatch.com

About the website

  • Sitemap
  • Site policy
  • Privacy notice
  • Information about cookies
  • Legal responsibility

Find information

  • Search
  • FAQ
  • Archive
  • Glossary

Subscription services

  • Subscription service
  • RSS

Follow us

Facebook Twitter Linkedin