The Remuneration Committee’s primary task is to propose to the Board the remuneration to the President and CEO and a long-term incentive plan for key employees.
The Remuneration Committee is elected by the Board at the statutory Board meeting after the Annual General Meeting and until the statutory Board meeting the following year. The work of the Remuneration Committee is directed by the Remuneration Committee Charter, which is reviewed and approved annually by the Board. The Remuneration Committee’s primary task is to propose to the Board the remuneration to the President and CEO and a long-term incentive plan for key employees. The purpose of a long-term incentive plan is to align the interests of key personnel with those of the shareholders.
The guidelines for executive remuneration in Atlas Copco aim to establish principles for fair and consistent remuneration with respect to compensation, benefits, and termination. The base salary is based on competence, area of responsibility, experience and performance, while the variable compensation is linked to predetermined and measurable criteria which can be both financial or nonfinancial. The guidelines for executive remuneration are reviewed annually and the Annual General Meeting 2021 approved the guidelines for remuneration. See also note 5.
The Remuneration Committee had three meetings in 2021. All members were present. During the year, the Remuneration Committee also supported the President and CEO in determining remuneration to the other members of Group Management. All meetings of the Remuneration Committee have been reported to the Board and the corresponding Minutes have been distributed to the Board. The Remuneration Committee members during 2021 were Hans Stråberg, Chair, Peter Wallenberg Jr, and Staffan Bohman.