AGM proposals

Proposed distribution of profits

See Proposed distribution of profits.

Compensation of senior executives, other managers and employees

The Board proposes that the AGM approve the following principles, which encompass the government’s new guidelines as laid out below. In other respects, these principles are essentially unchanged compared with the principles approved by the 2008 AGM.

• The starting point for compensation and other terms of employment for members of the executive management who are employed in Sweden consists of the government’s guidelines (3 July 2008) on terms of employment for senior executives of companies with state ownership.
• Salaries and other benefits shall be competitive but not leading with respect to amount compared with peer companies.
• No variable salary component or bonus is payable to the Group CEO. For other managers and employees in the Swedish operations, a maximum variable salary component corresponding to 16.7% of the employee’s normal base salary shall be applied. For certain managers, the normal base salary can also be reduced by 16.7%, depending on outcomes.

All executives with employment in Sweden shall be covered by an incentive programme that is based on the performance of the employee’s own unit and/or personal performance.

The owner’s long-term demand for improvements in value creation shall be a joint goal. Starting in 2008, this includes - in addition to economic value creation - also goals within the five strategic ambitions that Vattenfall works with. For members of the Executive Group Management, except for the CEO, and for the business unit managers (approx. 25 individuals in all), long-term targets have been set for a three-year period, 2008-2010, with the opportunity for that period to earn a total of four additional months’ salary upon achievement of the targets in the strategic areas. However, the sum of variable salary components broken down per year for the period 2008-2010 for persons with Swedish employment, may not exceed two months’ salaries.

For further information, please refer to the Corporate Governance Report and the section on executive compensation, as well as to Note 47 to the consolidated accounts in the 2008 Annual Report.