An organisation is defined by its ability to create change, adapt to its environment and capitalise on the opportunities presented to it. The speed and efficiency with which this is accomplished is what determines success, and its employees are the most important factor in achieving goals and objectives. MTG’s Code of Conduct, mission statement and twelve key rules have all 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:
- We promote equal opportunities irrespective of race, ethnical background, religion, nationality, gender, mental or physical handicaps, marital status, age, sexual orientation or any other status unrelated to the individual’s ability to perform
- We value diversity
- We do not tolerate discrimination or sexual, physical or mental harassment
- We seek to provide a healthy, safe and clean working environment
- We respect and support each other
The Group employed 2,936 full time employees at the end of 2009, compared to 2,969 employees at the beginning of 2009. 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 2009 Annual General Meeting. Senior executives covered by these guidelines include the Executive Management (below the “Executives”).
Remuneration to Executive Management is found in note 25 to this report.
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 consisting of Northern and Eastern European media companies. Remuneration is based on market competitive conditions and which also are aligned with shareholders’ interests. Executive Remuneration consists of a fixed and variable salary, as well as the possibility of participating 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 each 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.
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 time 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
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.
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.
The guiding principles have been followed during 2009.
Proposal for 2010 Executive Remuneration guidelines
The Board of Directors will propose to the 2010 Annual General Meeting that the guidelines for 2009 should be applied in 2010 with the exception of the maximum for variable remuneration which is proposed to change to 75% of the fixed annual salary.
Share-based long-term incentive plans
The Group has five outstanding share-based long-term incentive plans, decided upon in 2005, 2006, 2007, 2008 and 2009. For information about these programmes, see Note 25 and here.