During the year, the Board of Directors commissioned both a salary survey for all employees in accordance with the Discrimination Act as well as an external market comparison of both the management team and other employees, where a comparison has been made to the corresponding services in the financial sector in Sweden working with long-term management of capital.
The completed salary survey, from a gender perspective, concluded that there are no significant differences in pay either regarding equal work, work of equal value or in female- dominated groups.
External market comparison of salaries
The finalized external market comparison included all of AP4’s employees, plus senior management. The market comparison of salaries was prepared with corresponding positions in the Swedish financial sector working with the long-term management of capital.
The objective of the market comparison was to ensure that the Fourth AP Fund’s wage levels are in line.
The remuneration policy together with the government guide- lines for terms of employment for senior executives of the AP Funds ensures that AP4’s compensation levels are reasonable and defendable and not market leading, while at the same time the levels of remuneration should be market conforming and competitive.
The external consultant Willis Towers Watson conducted the comparison, analysis and compilation of the survey for the external market salary, whereby the base was drawn from their annual salaries and benefits survey for the financial sector in Sweden. Each employee’s compensation was compared with the corresponding positions of a group in the financial sector in Sweden working with long-term capital management: Alecta, AMF Pension, AFA Insurance, the Second AP Fund, the First AP Fund, Kammarkollegiet, Länsförsäkringar, SEB, the Sixth AP Fund, the Seventh AP Fund, Skandia, Swedbank and the Third AP Fund. These were deemed to compete for staff with similar responsibilities, experience and skills that are required by AP4 to fulfill its mission.
After review of the comparative analysis results, the Board could conclude that AP4 applies remuneration levels that are within established guidelines and that salaries are competitive, reasonable and defendable without being market leading. It was further found that senior executive benefits fit within the Government’s guidelines for terms of employment for senior executives of the AP Funds.