Elekta’s Executive Compensation Committee (ECC) is appointed by Elekta’s Board of Directors. The purpose of the Committee is to provide clarity in the decision process for issues related to compensation of executive staff within Elekta as well as other remuneration plans throughout Elekta.
The objective of the Committee is to achieve maximum shareholder and customer value through ensuring fairness and internal equality of the structure, scope and level of executive compensation in Elekta while maintaining market competitiveness.
During the fi scal year, the ECC consisted of the Chairman of the Board, Akbar Seddigh, who also was Chairman of the ECC and Board member Luciano Cattani. President and CEO Tomas Puusepp is present at the Committee meetings and the Group VP Human Resources serves as secretary.
The ECC provides the Board with recommendations regarding principles for formulating the Group’s remuneration system for senior executives and senior managers. The recommendations relate to the variable salary component, distribution between fixed and variable remuneration as well as the level of salary increases for top management. The ECC also proposes criteria for assessing performance of senior executives and senior managers, which are discussed and resolved on by the Board. The entire Board decides on remuneration to the President and CEO.
During the 2011/12 fiscal year, the ECC held two formal meetings. Minutes were taken at every meeting. Attendance at the committee meetings was 100 percent. More important matters dealt with by the ECC during the fiscal year included:
• Yearly remuneration audit for the CEO and the Executive Management
• Compensation benchmark for the CEO and Executive Management
• Review of the Group’s remuneration philosophy and strategy
• An evaluation of the company’s existing long-term incentive plan
• Proposals for the revision of the long-term incentive plan
Information on Elekta’s principles for remuneration of Executive Management and outstanding share and share-based incentive plans is presented in the 2011/12 annual report on pages 78–79 and in Note 5.