An organisation’s ability to create and adapt to change in its environment and to capitalise on these opportunities is what defines it. The speed and efficiency with which this is accomplished is what determines success. The employees are the most important factor in achieving goals and objectives. The Code of Conduct, mission statement and twelve key rules have been presented and communicated to employees by local management in each of the countries in which MTG operates. Internal surveys have been put in place to measure the extent to which employees embrace the policies, their view of management and the Company, and how well the policies are and could be implemented.
The most essential policies are:
- Equal opportunities irrespective of race, religion, nationality, gender, mental or physical disabilities, marital status, age, sexual orientation or any other status unrelated to the individual’s ability to perform
- Valuing diversity
- Not tolerating discrimination or sexual, physical or mental harassment
- Seek to provide a healthy, safe and clean working environment
- Respect and support for each other
The Group employed 2,969 full time employees at the end of 2008, compared to 2,381 employees at the beginning of 2008. Details of the average number of employees during the year and the aggregated remuneration for the year are presented in Notes 24 and 25.
Executive Remuneration
The guiding principles below were approved by the 2008 Annual General Meeting. Senior executives covered by these guidelines include the Executive Management (below the “Executives”).
Remuneration guidelines The objective of the guidelines is to ensure that MTG can attract, motivate and retain senior executives, within the context of MTG’s international peer group, which consists of Northern and Eastern European media companies. Remuneration is based on conditions that are market competitive and at the same time aligned with shareholders’ interests. Remuneration to the Executives consists of a fixed and variable salary, as well as the possibility of participation in a long-term incentive programme and pension schemes. These components create a well-balanced remuneration structure reflecting individual performance and responsibility, both short-term and long-term, as well as MTG’s overall performance.
Fixed salary Executives’ fixed salaries are competitive and based on individual Executive’s responsibilities and performance.
Variable salary Executives may receive variable remuneration in addition to fixed salaries. The contracted variable remuneration will generally not exceed a maximum of 50 per cent of the fixed annual salary. The variable remuneration shall be based on the performance of Executives in relation to established goals and targets.
In addition, the Board of Directors has previously approved certain exceptional bonus schemes for 2007 and 2008. The variable remuneration payments under the scheme in 2007 were SEK 8 million and will be significantly less for 2008.
Other benefits MTG provides other benefits to Executives in accordance with local practice. Other benefits can include, for example, company cars and health care. Housing allowance can also occasionally be granted for defined periods.
Pension Executives are entitled to pension commitments based on those that are customary in the country of employment. Pension commitments will be secured through premiums paid to insurance companies.
Notice of termination and severance pay If MTG terminates the employment of an Executive, salary payments will continue to be paid during the contractual notice period for a maximum of 12 months. There is no standard severance pay in addition to notice periods.
Deviations from the guidelines In special circumstances, the Board of Directors may deviate from the above guidelines, for example, with the payment of additional variable remuneration in the case of exceptional performance. In such cases the Board of Directors is obliged to explain the reason for the deviation at the following Annual General Meeting.
These guiding principles have been followed during 2008.
Proposal for 2009 Executive Remuneration guidelines
The Board of Directors will propose to the 2009 Annual General Meeting that the guidelines for 2008 should be applied in 2009 with a few changes resulting in a new wording as follows:
Variable salary Executives may receive variable remuneration in addition to fixed salaries. The contracted variable remuneration will generally not exceed a maximum of 50 per cent of the fixed annual salary. The variable remuneration shall be based on the performance of Executives in relation to established goals and targets.
The last paragraph in this section in the guidelines for 2008 is omitted.
Notice of termination and severance pay The maximum notice period in any Executive’s contract is twelve months during which time salary payment will continue. The Company does not generally allow any additional contractual severance payments to be agreed although there can be occasional cases where this takes place.
Share-based long-term incentive plans
The Group has four outstanding share-based long-term incentive plans, decided upon in 2005, 2006, 2007, and 2008. For information about these programmes, see Note 25 and here.