Download Guidelines for remuneration and other terms and conditions of employment of senior executives
The Board of Directors is proposing that the 2024 Annual General Meeting resolve to adopt the following guidelines for remuneration of senior executives within the OEM Group. The guidelines relate to remuneration of the Managing Director, Group management and other managers who report directly to the Managing Director.
OEM's vision is that the Company shall be a leading technology trading group in industrial components and systems in selected markets in Northern, Central and East Central Europe. To realise this vision, the Company has defined five strategic areas; growth, product range, marketing activities, logistics, and employees and leaders. These are important to the Company's future development and success and to the achievement of its financial targets. It is important that OEM has senior executives with a focus on business acumen, a strong commitment to the Company, and a sustainable leadership that promotes the long-term interests of the Company. The remuneration of senior executives should serve to encourage qualified managers to remain with the organisation long-term and also to ensure that the Company is able to hire qualified managers both externally and internally.
Market-competitive salaries and other remuneration terms shall apply for senior executives. Share-related remuneration, so-called incentive schemes, are to be decided by the Annual General Meeting.
Variable remuneration may be paid out, but is capped at the equivalent of eight monthly salaries. The variable remuneration shall be linked to the Company's financial targets and based on performance during a calendar year.
Senior executives' pension terms shall be premium-based and must not exceed 30% of fixed pay.
The period of notice on the Company's part may not exceed 24 months and involves the obligation to work during the period of notice. Employment agreements shall not contain provisions for severance pay.
The Board of Directors may waive these guidelines in individual instances should there be special reasons for doing so. Should the Board of Directors deviate from these guidelines, this must be reported in the remuneration report presented at the next Annual General Meeting.
The Board has appointed a Remuneration Committee. The work of the Remuneration Committee is to prepare the Board of Directors' decisions on proposals for guidelines on remuneration of senior executives and any decisions on deviations from the guidelines. The guidelines shall remain in force until new guidelines have been approved at the Annual General Meeting. The Remuneration Committee shall also monitor that guidelines for remuneration of senior executives are correctly applied.