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

Swedish Match
SWMA Jan 28, 2021
1:03 PM CET
- 0.2 % 643.60 SEK
The share
  • svenska
Close
  • Swedish Match websites

    • Image Bank
    • Swedish Match Brasil
    • Swedish Match Industries
    • The Solstickan Foundation (SE)
    • The Snus & Match Museum
  • Brand websites

    Smokefree

    • Swedish Match e-commerce service (SE)
    • Swedish Match e-commerce service (CH)
    • General (US)
    • Longhorn (US)
    • Timber Wolf (US)
    • ZYN

    Lights

    • Cricket
    • Nitedals
    • Redheads
  • Our company More Less

    Our company

    • Our company in brief More Less
      • CEO comment
    • Vision and strategy More Less
      • Financial strategy
      • Sustainability strategy
      • Acquisitions and divestments
    • Markets More Less
      • Our markets
      • Smokeless products worldwide
      • Trends
      • Global tobacco market
    • 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
      • Nicotine products and regulations
      • History of snus
      • Snus production
      • Ingredients in snus
      • History of chewing tobacco
    • Cigars More Less
      • Market development
      • History of cigars
    • Lights More Less
      • Market development
    • Value chain
    • 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 2020
        • AGM 2019
        • AGM 2018
      • 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
      • Sustainability organization
      • Stakeholder dialog and materiality analysis
      • Our contribution to the UN SDGs
    • Improve public health
    • Ensure ethical business practices
    • Equal opportunity
    • Reduce greenhouse gases
    • Reduce waste
    • Eliminate child labor
    • Code of Conduct More Less
      • Group Principles on Communication
      • Group Principles on Environmental Management
      • Supplier Code of Conduct
    • 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
    • Follow our journey
    • Calendar
    • Financial reports More Less
      • Interim reports
      • Annual reports More Less
        • Annual report 2019
        • Annual report 2018
        • Annual report 2017
    • 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
    • Presentations More Less
      • Webcasts and audiocasts
    • Debt information More Less
      • Debt sources of financing More Less
        • Debt programs
        • Outstanding bonds
      • Credit rating
      • Financial risks
    • IR contacts
  • 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
    • Work environment
    • Diversity and non-discrimination
    • Competence development
    • Compensation and benefits
    • What we do
    • Meet our employees
    • Vacant positions
    • Student
    • HR contacts
    Image of employees

    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

Incentive plans

In 2010 Swedish Match AB's Board of Directors decided about the present incentive structure for the CEO and the group management team.

The members of the GMT may be entitled to a variable salary in addition to the fixed salary. The variable salary may include both an annual short-term incentive program to be paid out in the beginning of the subsequent year depending on the outcome of the program, and a long-term incentive program with a performance period which shall not be shorter than three years.

Short-term incentive

The variable salary is capped in relation to the fixed salary and reflects the market practice in the country of residence. To promote managements’ shareholding in the company at least half of the short-term incentive shall be used to purchase and hold shares. If a group management team member doesn’t undertake to purchase shares for at least half of the received cash award net of income tax and to retain such shares for a period of not less than three years, the maximum short-term incentive is reduced by 20 percentage points.

The short-term incentive shall primarily be based on specific, clear, predetermined and measurable financial or operational criteria set by the Board of Directors in relation to the President, and by the Remuneration Committee in relation to the Group Management Team.

Performance targets for the short-term incentive are determined in the beginning of each year. The performance criterion for the CEO, the heads of corporate functions and the majority of the division Presidents, in the short-term incentive program for 2019 was Group operating profit. One member of the Group Management had partly the same criterion as the CEO and partly an incentive criterion linked to the division.

Long-term incentive plan

Under the long-term incentive program eligible executives may, after a three-year performance period, receive a cash award based on the actual performance of the Swedish Match Group under the performance period. Executives participating in the long-term incentive program are obliged to purchase shares for any cash bonus received under the program net after tax and to hold such shares for a period of two years after purchase.

The Final Award under each program will be dependent on the Actual Performance during the current three yearlong Performance Period as determined by the Remuneration Committee after the end of the Performance Period. The Performance Criteria, Performance Thresholds and Performance Targets will be determined by the Board of Directors in relation to the President and by the Remuneration Committee in relation to the group management team in the first year of the Performance Period and will be communicated to the Executives at the beginning of the Performance Period.

If an Executive’s employment is terminated by the Executive, or if the employment is terminated by the employing company other than for cause prior to the Settlement Date the Executive is entitled to a reduced Final award under the Plan. If an Executive’s employment is terminated by the Company for cause prior to the Settlement date the Executive is not entitled to any Final Award under the plan.

In the three yearlong incentive program that started in 2017 and ended in 2019, the performance criteria for the CEO and other members of group management was based on Group Operating profit (weight 75%) and Net Sales from product segments (weight 25%). For the criterion Group Operating profit the threshold for payout and target for maximum payout were 12,400 MSEK and 14,218 MSEK respectively and for the criterion Net Sales from product segments the corresponding numbers were 33,941 MSEK and 38,918 MSEK respectively. The Remuneration Committee established the total weighted performance outcome for the long- term program to 95,3 percent.

In the event that the pay out of an incentive is made based on performance that is proven to be manifestly misstated, the Board may decide to reclaim whole or a part of what has been paid. In its decision to reclaim any amount the Board may, in its sole discretion, reduce the amount to be reclaimed based on the executive’s lack of direct involvement in the performance and reporting of performance which has been manifestly misstated as well as any depreciation of value of shares purchased for the incentive.

Excutive Incentive Plan

Related documents

  • The Report of the Board of Directors pursuant to rule 10.3

Share

Share Facebook Share Twitter Share Linkedin

Share this page by email

Incorrect email
Incorrect email
Home / Corporate Governance / Management / Management compensation / Incentive plans
Page updated Mar 6, 2020

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

We use cookies in order to provide you with the best user experience. By using our website, you agree to the use of cookies. If you want to learn more, click here.

Close