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 non-current 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 4.9 (73.2 and 63.0). 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 42–200 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 decision-makin 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 1.1. 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 3.6. 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 11.9 and salar y benefts of M SEK 0.1. 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 3.5. 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