Description of remuneration terms

The Board of Spotlight Group annually determines and updates remuneration terms, which are based on Finansinspektionen’s regulations (2011: 1) on remuneration systems in credit institutions, securities companies and fund companies with a license for discretionary portfolio management. When formulating the terms, the Board has taken into account the type of operations conducted within the Group and its scope and complexity.

The Board has, in a balanced assessment, decided that only fixed remuneration, both directly and indirectly, should be paid to employees. The decision applies to all employees within the group. Thus, the company does not have the right to sign agreements on variable remuneration and / or share-related incentive programs.

Furthermore, the chairman of the board, as a special board member, together with the company’s CEO, shall prepare the board’s decision on remuneration to the executive management, key staff and employees who hold the overall responsibility for the company’s control functions within the group. However, the CEO shall not participate in the preparation of remuneration decisions for the CEO.

In addition, the remuneration terms contain, among other things, criteria for how fixed remuneration is to be paid. The criteria are considered to counteract that employees, in order to increase their fixed remuneration, take risks in their work that may adversely affect the company’s risk profile.

Through a decision that only fixed remuneration can be paid, and that the Chairman of the Board has been appointed as a special board member, the company is deemed to minimize employees’ monetary incentives to increase the business’s risk profile. All in all, the remuneration terms are considered to promote sound and efficient risk management and to counteract excessive risk-taking within the business.