SEK millions
Fixed salary 4)
Other benefits 5)
0.2
Short-term variable salary 6)
Long-term variable salary 6)
Total compensation
Social security
Pension expenses
Total
Guidelines for remuneration of the Senior Executives are included in the Board of Directors’ Report. The remuneration for the President is further discussed in the Remuneration Report. Compensation to the President and other members of the Group Executive Committee consists of a fixed salary component, a short-term variable salary component, and a long-term variable salary component.
The short-term variable salary component for 2023 (paid in 2024) was related to: A) three Group objectives, 1) EBITDA margin compared to peer group (Arcelor Mittal Europe, BE Group, JFE, Kingspan, Klöckner, Lindab, Nucor, Salzgitter, Tata Steel Europe, US Steel and Voestalpine), 2) Operating cash flow in relation to adjusted operating result before depreciation and amortization and 3) a sustainability objective measuring long time injury frequency, combined with B) divisional financial and operational objectives.
For the President and the Executive Vice Presidents of Group functions, the Group objectives account for 100%, and for divisional Executive Vice Presidents the Group objectives account for 40% and divisional objectives for 60%.
The short-term variable salary component is capped at 75% of base pay for the President and at 50% for others, except for the divisional head of SSAB Americas, who receives variable compensation competitive in the local market: Meeting the targets result in variable pay of 60% of base pay whereas over performance may amount to a maximum of 180% of base pay. In 2024, the outcomes of the short-term variable compensation in relation to base pay were on cash-basis as follows: 75,0% (54,5%) for the President and on average 60,2% (49,0%) for the other Group Executive Committee members.
Regarding sustainability topics linked to compensation (GOV-4), all employees who have short-term variable compensation in accordance with global instructions (approximately 2,100 employees) are covered by the group goal of sustainability with a focus on safety. In addition, divisions and subsidiaries may have additional sustainability targets at the unit level. Details regarding the CEO’s goals and outcomes are presented in the Remuneration Report.
For the President and other Group Executive Committee members, the notice period is 12 months in the event of dismissal by the company. In addition, in such situation, severance compensation equals to 6 months’ salary. In the event of resignation by the President or another Group Executive Committee member, the termination period is 6 months and there is no entitlement to severance compensation. The President earns variable compensation during the termination period only by remaining in active service.
The President’s retirement age is 65. The pension is based on contributions and is covered by insurance, and in 2024 the cost amounted to 30% (45%) of fixed salary. Earned pension is inviolable but premium payments cease upon termination of employment. The minimum retirement age for the other members of the Group Executive Committee is 62 and the pensions are based on contributions, except for Olavi Huhtala who is covered by the benefit-based pension scheme via Rautaruukin Eläkesäätiö with a possible retirement age of 60, as well as Charles Schmitt, whose pension scheme is in line with the US legislation and practice.