67
Remuneration and other benefits for the year1)
SEK
Salary/Board of
Directors' fees
Annual
variable salary
Other
benefits2) Pension cost Total
Board of Directors
Mikael Ekdahl, Chairman 900,000 - - - 900,000
Bengt Baron 350,000 - - - 350,000
Marianne Kirkegaard 350,000 - - - 350,000
Gun Nilsson 600,000 - - - 600,000
Märta Schörling Andreen 525,000 - - - 525,000
Lillie Li Valeur 475,000 - - - 475,000
Subtotal for Board 3,200,000 - - - 3,200,000
Senior Managers
Arne Frank, Chief Executive Officer* 6,550,466 2,801,277 3) 113,343 1,850,933 11,316,019
Fredrik Nilsson, acting Chief Executive Officer** 2,000,000 1,220,061 0 600,000 3,820,061
Other senior managers 36,653,762 18,439,284 3) 4,761,815 4,333,031 64,187,892
Subtotal, senior managers 45,204,228 22,460,622 4,875,158 6,783,964 79,323,9724)
Total 48,404,228 22,460,622 4,875,158 6,783,964 82,523,9725)
* Arne Frank passed away in July 2017.
** Position-related supplement from July 25 to December 31, 2017, and non-recurring remuneration during sick leave from May 8 to
July 24, 2017. Remuneration and other benefits for his role as CFO are recognized under “Other senior managers´.
1) Refers to items recorded as an expense in 2017.
2) Other benefits refer primarily to company cars.
3) Charged in the income statement in 2017 and estimated to be paid in 2018. During the year, variable remuneration expensed in 2016
of SEK 22,857,180 was paid.
4)5HIHUVWRWKHIROORZLQJIRU$QQH0HWWH2OHVHQ'DYLG6PLWK)UHGULN1LOVVRQ*HUDUGR*DUD/ySHGH+HUHLGD-DQ/HQIHULQN
Jens Wikstedt (to September 2017), Karsten Nielsen, Octavio Díaz de Léon, Renald Mackintosh, René Schou, Terry Thomas and
Torben Friis Lange.
5) Of the amount of SEK 82,523,972 SEK 35,723,625 relates to the Parent company, AAK AB.
-RKDQ:HVWPDQKDVEHHQDSSRLQWHGWKHQHZ3UHVLGHQWDQG&(2+HLVFXUUHQWO\6HQLRU9LFH3UHVLGHQW(XURSHDQG0DQDJLQJ
Director of the BlankLight division of Shiloh Industries, a global innovative solutions provider to the mobility market. Johan will
assume his role no later than June 1, 2018.
NOTE 9 – PROVISIONS FOR PENSIONS AND SIMILAR OBLIGATIONS
Defined benefit plans
The Group maintains defined benefit retirement plans in which employees earn the right to payment of benefits after completing
their employment, based on their final salary and period of service. These defined benefit retirement plans exist in Sweden, the
Netherlands, Belgium and India. There are further commitments for retirement and survivors’ pensions for salaried employees in
Sweden that are insured through Folksam (Folksam cooperative occupational pensions).
The obligations for retirement and survivors’ pension for salaried employees in Sweden are insured through policies with Alecta
or correspondingly in Folksam (Folksam cooperative occupational pensions). According to a statement by the Swedish Financial
Reporting Board, UFR 3, classification of ITP plans financed via insurance with Alecta, this is a defined benefit plan that involves
several different employers. For the period from January 1 to December 31, 2017 AAK AB (publ.) and AAK Sweden AB have not
had access to sufficient information to recognize their proportional shares of the plan’s obligations, plan assets and costs, which
has meant that it has not been possible to recognize the plan as a defined benefit plan. The ITP 2 pension plan that is insured
through Folksam is therefore recognized as a defined contribution plan. The premium for the defined benefit retirement and
survivors’ pension is calculated individually and depends on factors including salary, pension earned previously and expected
remaining period of service. Charges for ITP 2 pensions insured through Folksam (Folksam cooperative occupational pensions)
are SEK 14 million (14).
The collective consolidation level consists of the market value of Alecta’s assets as a percentage of the estimated insurance
commitments, computed using Alecta’s actuarial methods and assumptions, which are not in accordance with IAS 19. The
collective consolidation level should normally be permitted to vary between 125 and 155 percent. If Alecta’s collective consolidation
level is below 125 percent or above 155 percent, measures must be taken to create the conditions for the consolidation level
to return to the normal range. If the consolidation is low, one measure may be to increase the agreed price for new policies and
increasing existing benefits. If the consolidation is high, one measure may be to introduce premium reductions. At year-end 2017,
Alecta’s and Folksam’s surplus in the form of their collective consolidation levels was 154 percent and 178 percent, respectively
(149 percent and 186 percent, respectively).
The Group has defined benefit pension plans in Sweden and the Netherlands which come under largely similar regulations.
All plans are pension plans based on final salary and give employees covered by the plans benefits in the form of a guaranteed
level of pension payments during their lives. The level of the benefits depends on the employees’ period of service and salary on
retirement. The pension payments in the Swedish and Dutch plans are normally indexed according to the consumer price index.
The plans are subject to largely similar risks. Benefits are paid from plans that are secured with foundations. The activities of the
foundations are regulated by national regulations and practice which also apply to the relationship between the Group and the
administrator (or equivalent) of the foundation’s plan assets. Responsibility for monitoring the plans, including investment decisions
and contributions, is held jointly by the company and the foundation’s board.