AAK Annual Report 2017

67 Remuneration and other benefits for the year 1) SEK Salary/Board of Directors' fees Annual variable salary Other benefits 2) 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 79,323,972 4) Total 48,404,228 22,460,622 4,875,158 6,783,964 82,523,972 5) * 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) 5HIHUV WR WKH IROORZLQJ IRU $QQH 0HWWH 2OHVHQ 'DYLG 6PLWK )UHGULN 1LOVVRQ *HUDUGR *DU]D /ySH] GH +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 :HVWPDQ KDV EHHQ DSSRLQWHG WKH QHZ 3UHVLGHQW DQG &(2 +H LV FXUUHQWO\ 6HQLRU 9LFH 3UHVLGHQW (XURSH DQG 0DQDJLQJ 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 consolida- tion 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 deci- sions and contributions, is held jointly by the company and the foundation’s board.