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Note 9 - Employees and personnel costs

Average number of employees

The Parent Company's Board (excl. employee representatives) consists of 4 men and 3 women. On all of the Group’s Boards, there are 22 men and 4 women.
Parent Company executive management consists of 10 men and 3 women.
The Group’s executive management teams consists of 29 men and 8 women.

Salaries, other remuneration and social security expenses

Of the Group’s pension costs, 3 (3) refers to the Board and CEO. The Group’s outstanding pension obligations for these positions amount to 0 (0). Costs arising due to remuneration for terminations of employment during the year amount to 21 (5).

Salaries and other remuneration by country and between board members, etc., and other employees

For the period before incorporation of the public enterprise Swedish State Railways at year-end 2000, the Swedish State is liable for earned and unpaid pension benefits for those employees of the Parent Company who were employees of Swedish State Railways before incorporation. These employees are covered by the PA 91 or PA 03 government pension schemes administered by the National Government Employee Pensions Board (SPV). PA 91 is a defined-benefit pension scheme and PA 03 has defined-benefit and defined-contribution components. Under these plans, several employees have the right to retire at age 60 or 63, which is termed non-vested pension entitlement. The employees were offered the option of retaining these schemes. Benefits under pension scheme PA 91 and the defined-benefit portion of PA 03 are not significant and are thus classified in their entirety as defined-contribution pension schemes. All new employees are covered by the supplementary scheme for employees in industry and commerce (the Swedish ITP scheme); normal retirement age is 65. The ITP scheme is classified as a defined-benefit plan. The plan is administered by Collectum and is a joint plan for several employers. At present, it is not possible to obtain the data required to report this plan as a defined-benefit plan, so it is reported as a defined-contribution plan. Employees born in 1979 or later are covered by a defined-contribution ITP plan.

The year’s costs for defined-contribution plans amount to 120 (95) for the Parent Company and 127 (97) for the Group. The subsidiary TGOJ Trafik AB also has non-vested pensions, for which the liability is reported under provisions for pensions as per IAS 19.

The Group also has several different defined-contribution and defined- benefit pension solutions. Since these are not deemed significant in the context of the Group they were not reported as per IAS 19.

Provisions for pensions as per IAS 19

Basis for assumptions

The market return on first-class 10-year government bonds was used for the discount rate. This is the longest obtainable maturity in Sweden. Plan assets consist of insurance policies. For these, it was assumed that investment can be made using the same principle as for the discount rate. The anticipated rate of salary increase and the change in income base amount are expected to correspond to one another. The assumption is based on the rate of increase that is reasonable in relation to other parameters. The Swedish Central Bank's long-term goal for inflation was used for inflation assumptions. Employee turnover rate and utilisation rate of non-vested pensions are based on historical experience.

Absence due to illness (Full year)

Remuneration and other benefits for senior executives

Parent Company

Principles
The AGM decides on annual fees for the Board Chairman and Board members. Employee representatives receive fees per meeting. Remuneration to the CEO and other senior executives comprises a basic salary, variable pay where applicable, other benefits and pensions.

Remuneration to the Board (SEK thousand)

Remuneration and other benefits for senior executives (SEK thousand)

Other benefits refers to company cars, fuel allowance, food allowance, household services and health insurance. Senior executives who waive their right to company car benefits receive cash compensation in the form of salary.

Preparatory and decision-making process

For 2009, Green Cargo applied the government guidelines dated 20 April 2009 on terms of employment for senior executives in state-owned companies, which was formally decided at an extra AGM on 4 March 2010. The Board decides on terms of employment for the CEO according to proposals from the Board’s remuneration committee. The committee also deals with the structure of the terms for others in senior management, including the managers of subsidiaries. These terms include pension benefits, conditions regarding termination of employment and benefits besides salary. The CEO decides on the salary of senior executives in the Group. The Board also proposes that the AGM decide if the 2009 guidelines will also be applied in 2010.

Incentive program

As in the previous year, no incentive program was implemented in 2009, which means that no variable remuneration was paid to the CEO or other senior executives during the year.

Pensions

The retirement age for the Parent Company’s CEO and the CFO is 62. The retirement age for other senior executives is 65. They are normally covered by the ITP scheme or another solution with an equivalent cost level, in which case the alternative rule applies. All pension benefits are vested, except for those of the CFO.

Severance pay

A mutual six-month period of notice applies between the company and the CEO. Severance pay corresponding to 18 months’ salary is payable if the company ends the employment. New income from other employment or own entrepreneurial activities may be deducted from the termination benefits and severance pay. If the CEO ends his employment, no severance pay is payable.

A mutual six-month period of notice applies between the company and other senior executives. Severance pay corresponding to 12 months’ salary is payable if the company ends the employment. New income from other employment or own entrepreneurial activities will be deducted from termination benefits and severance pay. No severance pay is payable if senior executives end their employment.