N O TE 7 T ransacti ons with relat ed partie s Joint v entures The Securit as Group has had only one compan y Securit as Direct S A S witz erland in which its share of the v otin g rig hts w as 50 percent This compan y w as div es ted as of October 21 2011 Due to the ne g lig ible impact of this compan y on the Group s earnin g s and fnancial position it has not been reported separ ately in the consolidated s t atement of income or balance sheet There ha v e been no tr ansactions bet w een Securit as Direct S A and Securit as e x cept loans interes t and dividends The compan y is included under Other in the Group s se gment reportin g as per belo w M SEK 2012 2011 2010 T ot al sales 50 64 Oper atin g income before amortization 5 10 Oper atin g income after amortization 5 10 Oper atin g noncurrent assets 13 Accounts receiv able 7 Other assets 16 Other liabilities 16 T ot al oper atin g capit al emplo y ed 20 G oodwill 9 T ot al capit al emplo y ed 29 Other Information on the remuner ation to the Boar d of Director s and Senior M ana g ement is pro vided in note 8 Information on tot al pa yroll e xpenses for the Boar d of Director s and the Presidents of the Group is pro vided in note 12 Guar antees on behalf of related parties amount to M SEK 49 732 and 630 F or information on the Parent Compan y s tr ansactions with related parties refer to note 40 and note 43 N O TE 8 Remuneration t o the Board o f Direct ors and senior management G ener al Principles The Chairman of the Boar d and the Director s receiv e fees in accor dance with the decision of the Annual G ener al m eetin g Separ ate fees are paid for commit tee w ork Neither the President and CEO nor the emplo y ee repre sent ativ es receiv e Director s fees The Annual G ener al M eetin g on M a y 7 2012 decided upon guidelines for remuner ation to senior mana g ement re gar din g 2012 in accor dance with the follo win g The fundament al principle is that remuner ation and other terms of emplo yment for senior mana g ement shall be competitiv e and in accor dance with mark et conditions in or der to ensure that the Securit as Group will be able to at tr act and k eep competent senior mana g ement emplo y ees The tot al remuner ation to senior mana g ement shall consis t of a fx ed basic salar y v ariable remuner ation pensions and other benefts In addition to a fx ed annual salar y the Group M ana g ement ma y also receiv e v ariable remuner ation which shall be based on the outcome in relation to fnancial g oals and gro wth t ar g ets within the individual area of responsibilit y Group or division and which shall a gree with the interes t of the shareholder s The v ariable remuner ation shall amount to a maximum of 60 percent of the fx ed annual salar y for the President and CEO and a maximum of 42200 percent of the fx ed annual salar y for other individuals of the Group M ana g ement If cash pa yment of v ariable remuner ation has been efected on grounds later pro v en to be ob viously inaccur ate the com pan y shall ha v e the possibilit y to reclaim such paid remuner ation The undert akin g s of the compan y as re gar ds v ariable remuner ation to Group M ana g ement ma y at maximum outcome durin g 2012 amount to a tot al of M SEK 65 Pre viously decided remuner ation that has not y et been paid can be found in note 8 of the Annual R eport for 2011 The pension rig hts of senior mana g ement emplo y ees shall be applicable as from the a g e of 65 at the earlies t and the entire Group m ana g ement shall be subject to defned contribution pension plans for which insur ance premi ums are tr ansferred from the individual s tot al remuner ation and paid b y the compan y durin g the term of emplo yment V ariable compensation shall not qualif y for pension purposes unless local re gulations pro vide other wise Other benefts such as compan y car special health insur ance or occupa tional health ser vice shall be pro vided to the e xtent this is considered cus tomar y for senior mana g ement emplo y ees holdin g equiv alent positions on the emplo yment mark et where the senior mana g ement emplo y ee is activ e At dismissal the notice period for all senior mana g ement emplo y ees shall amount to a maximum of 12 months with a rig ht to redundanc y pa y ment after the end of the notice period equiv alent to a maximum of 100 percent of the fx ed salar y for a period not e x ceedin g 12 months At resig nation b y a senior mana g ement emplo y ee the notice period shall amount to a maximum of six months These guidelines shall apply to individuals who are included in Group m ana g ement durin g the term of application of these guidelines The guide lines shall apply to a greements entered into after the adoption b y the Annual G ener al M eetin g and to chan g es made in e xis tin g a greements after this date The Boar d shall be entitled to de viate from the guidelines in individual cases if there are particular grounds for such de viation The Boar d of Director s proposal to the Annual G ener al M eetin g in M a y 2013 on guidelines for remuner ation to senior mana g ement re gar din g 2013 is presented in the R eport of the Boar d of Director s in this Annual R eport Plannin g and decisionmakin g process The Boar d s remuner ation commit tee deals with all the abo v e mat ter s re gar din g the President and CEO and other member s of Group M ana g ement as w ell as other mana g ement le v els if the commit tee so decides The com mit tee presents its proposals to the Boar d of Director s which t ak es all deci sions The member s of the remuner ation commit tee are M elk er Schorlin g chairman and Annik a F alk en gren The commit tee has held one meetin g in 2012 Boar d of Director s F or the 2012 fnancial y ear the Chairman M elk er Schorlin g receiv ed a director s fee includin g commit tee w ork fee of M SEK 11 The other Direc tor s receiv ed an a g gre gate director s fee includin g commit tee w ork fee of M SEK 36 The remuner ation for each member of the Boar d of Director s is disclosed in the t ables belo w The Boar d of Director s is other wise not entitled to an y other compensation e x cept for tr a v el and lod g in g e xpenses President and Chief Ex ecutiv e Ofcer The President and CEO Alf G or ansson receiv ed in the fnancial y ear 2012 a fx ed salar y amountin g to M SEK 119 and salar y benefts of M SEK 01 There is no v ariable compensation for the 2012 per formance The President and CEO has a defned contribution pension plan amountin g to 30 percent of his annual fx ed salar y The retirement a g e for the President and CEO is 65 In 2012 the pension cos ts for the President and CEO amounted to M SEK 35 No pension beneft is conditioned b y future emplo yment U pon dismissal the notice period for the President and CEO amount to 12 months with a rig ht to a se v er ance pa y after the end of the notice period equiv alent to 12 months fx ed salar y 91 Annual R eport Notes and comments to the consolidated fnancial s t atements Securit as Annual R eport 2012