The board of directors' proposal regarding guidelines for remuneration and other
terms of employment for the company management of Intrum Justitia AB (publ)
The board proposes that the following guidelines shall be approved by the annual general
meeting for the time up until the annual general meeting 2014. The guidelines shall apply to
the CEO and the members of Intrum Justitia’s Group Management Team. The proposal has
been prepared by the board and the remuneration committee of the board.
Intrum Justitia’s success depends on the commitment and professionalism of its staff. The
total remuneration shall be competitive within each market in which Intrum Justitia is
present to attract, motivate and retain highly skilled executives. Individual remuneration
levels shall be based on the factors of competence, responsibility and performance.
The total remuneration may be based upon four main components; base salary, short- and
long-term variable salary programmes and pension. In addition hereto, other benefits, such
as a company car, may be offered.
The base salary depends on the complexity of work and the individual's performance and
competence. The variable remunerations shall be capped.
Short-term variable salary
Short-term variable salary is set for one year at a time and shall be subject to the
achievement of predetermined and measurable targets. Such targets may be general or
individual as well as qualitative or quantitative. All targets shall be agreed in writing.
Profitability based objectives and discretionary based objectives related to the ongoing
strategy transformation are examples of objectives used.
The one-year variable part of the salary contributes to decrease the share of fixed costs and
to focus the efforts to areas of activities that the board wants to prioritise.
Short-term variable salary shall not exceed 50 percent of the fixed annual salary. There are
deviations from this in a few older employment agreements.
The cost for short-term variable salary programmes to the managing director and other
group management personnel is estimated not to exceed MSEK 11.5, excluding social
charges, during 2013.
Long-term variable salary
The aim of Intrum Justitia’s long-term variable salary programmes is to stimulate the
participants - whose efforts are deemed to have a direct impact on the group’s result,
profitability and value growth - to further increased efforts, by aligning their long-term
interests and perspectives with those of the shareholders. The aim of the programmes is
further to create a long-term commitment to Intrum Justitia, to strengthen the overall
perspective of Intrum Justitia and to offer the participants an opportunity to take part of
Intrum Justitia’s long-term success and value creation. Another target is to decrease the
share of fixed costs.
Long-term variable salary programmes shall be performance-based. The maximum
outcome shall be limited in relation to the participant’s fixed annual salary at the time of
implementation of the program, 150 percent for the CEO and 50 percent for other members
of the group management.
Miscellaneous
New pension plans shall be defined contribution-based and the size of the pensionable
salary shall be capped.
At termination of employment by Intrum Justitia, severance payments (if any) shall not
exceed 12 months’ base salary. There are deviations from this in a few existing
employment agreements.
The board shall have the possibility to deviate from these principles if special reasons are at
hand in an individual case.
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Stockholm in March 2013
The board of directors of Intrum Justitia AB (publ)
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