Remuneration

Information from Annual report and Group Instruction concerning remuneration for executives.

Market-oriented salaries and benefits – including compensation based on performance – are a prerequisite for being able to recruit and retain competent employees.

Vattenfall offers competitive salaries and benefits and strives to be perceived as an employer that truly rewards strong performance, focuses on potential and applies flexible solutions that facilitate employees in their work. Accordingly, Vattenfall emphasizes individual, differentiated salaries with a focus on performance and potential.

In 2006, Vattenfall introduced the Group Instruction (policy) concerning the remuneration of executive positions. This instruction is an essential part of the performance culture at Vattenfall and it applies to top management.

Remuneration and salaries are to be differentiated and individual. Of highest importance is that the setting of salaries shall be based on individual performance and future potential. Normally, salary consists of a fixed base salary along with a variable portion, or bonus.

The variable portion of salary shall always include one part that is associated with the current Group target. This part shall be weighted at least 10 per cent compared to the other targets.

Apart from the positive feedback provided by salary changes and the outcome of regular bonus schemes, other means may also to be used if they can be motivated as an appropriate alternative. For example, a gratuity or one-time-payment/bonus may be made in combination with explicit feedback in order to reward results that are achieved for a particular case.