Note 12 Personnel and Board of Directors

 

 

Group

 

Parent Company

Number of employees

 

2020

 

2019

 

2020

 

2019

Average number of employees

 

413

 

420

 

81

 

74

of which women

 

162

 

163

 

49

 

41

of which Finland (of which women)

 

2 (1)

 

1 (0)

 

 

of which Denmark (of which women)

 

12 (3)

 

13 (4)

 

 

Salaries, remuneration and benefits

During 2020, the Parent Company had 8 (7) board members, of whom 4 (4) were women, while the total number of Board members in the Group’s subsidiaries was 13 (14), of whom 4 (5) were women. At year end, the Group had 8 (9) senior executives, of whom 4 (4) were women. The total number of senior executives in the management groups of all the subsidiaries, and senior executives of the Group, was 37 (37), of whom 14 (14) were women.

 

 

Group

 

Parent Company

Salaries, remuneration and benefits

 

2020

 

2019

 

2020

 

2019

Chairman of the Board

 

1.2

 

1.1

 

1.2

 

1.1

Other Board members

 

3.0

 

2.9

 

3.0

 

2.9

Chief Executive Officer

 

 

 

 

 

 

 

 

Fixed salary

 

4.7

 

4.7

 

4.7

 

4.7

Variable remuneration

 

3.5

 

2.3

 

3.5

 

2.3

Benefits

 

0.1

 

0.1

 

0.1

 

0.1

Other senior executives

 

 

 

 

 

 

 

 

Group: 7 (8), Parent Company: 3 (4)

 

 

 

 

 

 

 

 

Fixed salary

 

13.2

 

15.1

 

5.9

 

10.1

Variable remuneration

 

7.2

 

5.9

 

2.5

 

2.9

Benefits

 

0.6

 

0.5

 

0.2

 

0.2

Employees excl. exec. mgmt

 

286.1

 

256.4

 

79.5

 

53.1

Total

 

319.6

 

289.0

 

100.6

 

77.4

Contractual pensions costs

 

 

 

 

 

 

 

 

Chief Executive Officer

 

1.5

 

1.4

 

1.5

 

1.4

Other senior executives (7m 3w)

 

4.2

 

4.9

 

1.9

 

3.3

Employees excl. exec. mgmt

 

35.6

 

31.7

 

11.6

 

7.0

Total

 

41.3

 

38.0

 

15.0

 

11.7

Statutory social security expenses incl. payroll tax

 

 

 

 

 

 

 

 

Chairman of the Board

 

 

0.3

 

 

0.3

Other Board members

 

 

0.9

 

 

0.9

Chief Executive Officer

 

3.0

 

2.6

 

3.0

 

2.6

Other senior executives
(7m 3w)

 

7.6

 

7.9

 

3.2

 

5.0

Employees excl. exec. mgmt

 

98.4

 

88.2

 

27.8

 

18.4

Total

 

109

 

99.9

 

34.0

 

27.2

Total

 

469.9

 

426.9

 

149.6

 

116.3

Board remuneration

Board remuneration was set by the 2020 Annual General Meeting at KSEK 4,640, of which KSEK 1,015 was allocated to the Chairman of the Board and KSEK 425 to each of the remaining Board members. Additional remuneration totalling KSEK 650 is also due. These amounts apply from the AGM on 19 March 2020 to the AGM on 25 March 2021.

Remuneration to the Board

 

2020

 

2019

Charlotte Strömberg

 

1,189

 

1,076

Per Berggren

 

490

 

451

Anna-Karin Hatt

 

490

 

451

Christer Jacobson

 

421

 

401

Christina Karlsson Kazeem

 

421

 

401

Nina Linander

 

609

 

551

Johan Skoglund

 

121

 

476

Zdravko Markovski

 

263

 

0

Joacim Sjöberg

 

213

 

0

Total

 

4,217

 

3,807

Executive Management

At year end, the CEO, the Chief Financial Officer, the Communications Director and HR Director, as well as the four managing directors of the regions, were part of Castellum AB.

Remuneration and benefits

Remuneration and benefits for Executive Management are prepared by the Remuneration Committee and decided by the Board of Directors. The remuneration comprises a fixed salary as well as a variable remuneration according to an incentive plan, described below. During the three-year period of the plan, variable remuneration can amount to a maximum of three years’ salary. Executive Management has an incentive plan that comprises two components:

  • A profit-based component that is based on growth in income from property management compared to the previous year, as well as an overall estimation of development for certain individual factors. Full outcome requires that growth in income from property management per share reaches 10% per year. When growth is in the 0–10% range, a linear calculation of the incentive is made. The profit-based component is paid out yearly as salary after the year-end closing and can total no more than six months’ salary per year. The outcome for 2020 was 72% (71), representing a cost of MSEK 6 (6) including social security contributions. The programme expired at the end of 2020.
  • A share price-based component that is based on the total return on the Castellum share during a three-year period, both in nominal figures and compared with index for property shares in Sweden, the Eurozone and the UK. For full outcome of the incentive plan, the total return must be at least 50% during the period and the total yield has to exceed index development by at least 5 percentage points during the period. When growth is in the 0–50% and 0–5 percentage points ranges respectively, a linear calculation of the incentive is made. Any variable remuneration is paid as salary after the measurement period from June 2020 to May 2023. During the three-year period, the share price-based portion may total no more than one and a half years’ salary, equivalent to a cost for Castellum of MSEK 34 including social security expenses. As of December 2020, the time-adjusted outcome was 64% (75%), representing a cost of MSEK 4 (15) including social security contributions. Final reading and set-offs will occur in May 2023. A three-year share price-related incentive plan expired in May 2020, which is why a set-off occurred that resulted in costs in 2020 of MSEK 1 including social security contributions.

Executives in receipt of variable remuneration according to the incentive plan must acquire Castellum shares for at least half of the amount of the payment due after tax. The paid incentive does not affect pensionable contributions.

Pensions

Members of Executive Management have defined-contribution pensions with no other obligations for the company than to pay an annual premium during the time of employment. This implies that these persons, after completed employment, have the right to decide on their own, the time-frame during which the defined-contribution payments and subsequent return will be received as pension. The retirement age for the CEO and other members of Executive Management is 65 years.

Notice of dismissal

In the event of notice of dismissal by the company, the notice period will not exceed 6 months regarding the Chief Executive Officer and 12 months for any other member of Group executive management. When notice of termination is given by the Chief Executive Officer or any other member of Executive Management of the company, the notice period is six months. During the notice period, salary and other benefits are paid, with deduction for salary and remuneration derived from other employment or activity. No deduction will occur for the Chief Executive Officer. Upon notice of dismissal of the Chief Executive Officer by the company, a severance pay of 12 months’ fixed salary is paid, and is not reduced as a result of other income received by the Chief Executive Officer.

Pensions for other employees

Other employees at Castellum have defined-contribution pensions, with no other obligations for the company than to pay an annual premium during the time of employment. This implies that these persons, after completed employment, have their own right to decide on the time-frame during which the defined-contribution payments and their return on investment will be received as pension. However, there is an exception for about 40 employees within the Castellum Group who instead have defined-benefit ITP plans with regular payments to Alecta. Fees for the year for pension insurance policies signed with Alecta totalled MSEK 1.6 (1.6). The surplus in Alecta may be distributed to the insurance holder and/or to the insured. Alecta’s surplus in the collective consolidation level as of December had not been made official at the time of signing of this Annual Report and can therefore not be reported. Alecta’s latest official consolidation level for 2020 (preliminary figure) was 148% (148). The collective consolidation level is made up by the market value of Alecta’s assets as a percentage of the insurance obligations calculated according to Alecta’s assumptions for calculating the insurance, which do not comply with IAS 19.

Absence due to illness

Sick leave for the year was 2% (3), of which a 1-percentage point share (2) was for long-term sick leave. Sick leave for men and women were 2% (3) and 2% (3), respectively. Absences due to illness were 2% (4) for the age group 29 years and younger, 2% (3) for the age group 30–49 years and 2% (3) for the age group 50 years or older. Sick leave for the Parent Company was 3% (3), of which a 2% share (1) was for long-term sick leave.