Note 6

Personnel

  2016   2015  
Number of employees Total Women Total Women
Averge number of employees  53 19  55 20
Number of employees, December 31  54  19 55 21
Number of Executive Managament members, December 31  7  2 7 2


Cost of personnel redundancies

The 2016 cost of personnel reductions amounted to SEK 1 109 (4 301) K and related to compensation for salary, pension costs and social security charges.

Salaries and remuneration

Remuneration for the Board of Directors, set by the Government, is unchanged in relation to the previous year. The Board sets the terms of employment for the CEO based on recommendations from the Remuneration Committee. Remuneration to the CEO, Executive management and the compliance officer consists of a base salary. As assigned by the Board and Remuneration Committee, an external consultant annually performs an examination of remuneration levels for senior management at the Fund. The Board can thereby ascertain that AP4 complies with the Government’s guidelines regarding remuneration for senior management at the AP Funds. Read more about remuneration under Remuneration at AP4 on pages 38-39 in the Annual Report.

Incentive-based remuneration

The plan for variable remuneration is part of the Fund’s remuneration policy and is determined annually by the Board. The plan covers all employees employed more than six months, except for the CEO, Executive management, Head of Risk Control and the Compliance officer. The basic principle is that incentive-based remuneration should be paid for excess returns relative to the benchmark and reference indexes, provided that the fund shows a positive result for the financial year. The maximum outcome for the full-year employee is two months’ salary. For 2016, SEK 2 747 (4 266) thousand was expensed relating to variable remuneration, excluding social security contributions.

Pensions and similar benefits

Niklas Ekvall was appointed CEO by AP4's Board of Directors to succeed Mats Andersson, who left his position June 30, 2016. Mats Andersson’s employment contract included a mutual notice period of six months. Niklas Ekvall assumed the role of CEO October 1, 2016.

The CEO’s pension benefits and severance package are specified in his employment contract. The provisions of the contract include pension entitlement at age 65, with a pension provision of 30% (30) of salary. A mutual period of notice of termination of six (6) months applies for the CEO. If the Fund gives notice, the CEO is also entitled to a severance package equal to 18 months’ salary. The severance package is paid out monthly and is reduced by any other income from salary, assignments or own business.  The employment contract for the Deputy CEO, Magnus Eriksson who resigned from AP4 during the Fall of 2016, included a mutual notice period of six months. If the Fund gives notice, the Deputy CEO is also entitled to a severance package equal to 12 months salary. The severance package is paid out monthly and is reduced by any other income from salary, assignments or own business. The Deputy CEO is entitled to a pension in accordance with the Fund’s pension policy.

Other executive management committee members and other employees have individual employment contracts that specify severance notice based on the current collective agreement between the Employers’ Organization of the Swedish Banking Institutions (BAO) and the Swedish Confederation of Professional Associations (SACO). Pension entitlements are based on either defined benefits, according to the current collective agreement between BAO and SACO, or defined contributions, according to the Fund’s pension policy specifying a pension contribution of 30% on remuneration exceeding 7.5 base amounts.

All employees are entitled to substitute gross salary for pension contributions. In such cases, the pension contribution is increased by 5.8%, corresponding to the difference between the Fund’s costs for payroll tax and social security contributions. The procedure is neutral in terms of costs for the Fund.

All employees have healthcare coverage. The CEO and persons employed before 1 January 2007 have, in addition to remuneration as per the collective agreement, health insurance covering terms of illness longer than three (3) months, which pays compensation amounting to 90% of
income up to 20 base amounts and 80% of income above 20 base amounts, with a ceiling amounting to 40 base amounts. The amount disbursed is reduced by any amounts paid from the Swedish Social
Insurance Agency, SPP insurance, and any other insurance policies.

Other benefits

All employees can purchase group life insurance taxed as a fringe benefit. CEO has the right to one parking space, which is taxed as a fringe benefit. The funds also has four parking spaces that employees can use, which also is taxable as a fringe benefit. The value of the benefits in 2016 totaled 200 (193) k.

Employee Costs, SEK k, 2016 Salaries and remuneration

Incentive based remuneration

Pension costs Substitution of salary for pension

Social security costs

Total

Chairman of the Board Monica Caneman¹

29 - - - 9 38

Chairman of the Board Sarah McPhee²

74  -  -  -  23  97

Other Board Directors³

 511  -  -  -  138  649

Chief Executive Officer Mats Andersson⁴

 2 622  -  1 374  556  1 157  5 153

Chief Executive Officer Niklas Ekvall⁵

1 110 - 333 - 430 1 873

Other Executive Management members

           

Deputy CEO and Chief Investment Officer Magnus Eriksson⁶

 1 564  -  990  990  922  4 260

Head of Global Macro Bengt Lindefeldt³

 3 244  -  -  -  1 224  5 313

Head of Equity Management Per Colleen³

 2 689  -  143  143  1 021  4 434

Chief Operating Officer Susan Lindkvist

 1 542  -  381  381  723  3 250

Head of Performance and Risk Control Nicklas Wikström

 1 558  -  317  317  706  3 156

General Counsel Ulrika Malmberg Livijn

 1 539  -  317  317  699  3 127

Head of Alternative InvestmentsTobias Fransson⁷

2 069 - - - 796 3 468

Other employees

 41 899  2 747  2 546  2 546  17 699  78 562

Total

 60 450  2 747  5 250  5 250  25 547 113 380

Other personnel costs

           3 142

Total personnel costs

          116 522

 

Employee Costs, SEK k, 2015 Salaries and remuneration

Incentivebased remuneration

Pension costs Substitution of salary for pension Social security costs ² Total

Chairman of the Board Monica Caneman

117 - -  - 37 154

Other Board Directors¹

507  -  -  - 126 633

Chief Executive Officer Mats Andersson

3 234 - 2 200 834 1 550 6 984

Other Executive Management members

           

Deputy CEO and Chief Investment Officer Magnus Eriksson

1 863 - 2 533 1 485 1 200 5 596

Head of Global Macro Bengt Lindefeldt³

2 930 - 1 285 281 1 232 5 447

Head of Equity Management Per Colleen³

2 199 - 843 127 895 3 937

Chief Operating Officer Susan Lindkvist

1 493 - 930 322 694 3 117

Head of Performance and Risk Control Nicklas Wikström

1 599 - 752 175 685 3 3036

General Counsel Ulrika Malmberg Livijn

1 427 - 807 270 644 2 8 78

Other employees

47 606 4 266 16 831 1 747 19 953 88 656

Total

62 975 4 266 26 181 5 241 27 016 120 438

Other personnel costs

          3 234

Total personnel costs

          123 672