Remuneration

Description of Loomis AB’s system of variable remuneration to Group management and of outstanding share- and share price related incentive programs.

Below follows a description of Loomis’ system of variable remuneration to Group management and of outstanding share- and share-price-related incentive program in accordance with the Swedish code of Corporate Governance, Section 10.3.

The remuneration complies with the 2014 Annual General Meeting’s guidelines for remuneration to Group management.

The “Group management” includes persons in the Loomis Group management team.

System of variable remuneration to Group management

The variable remuneration is based on performance in relation to earnings targets within the individual area of responsibility and is individually determined for each member of the Group management. The President’s variable remuneration, within the framework of the Company’s Annual Incentive Plan (“AIP”), is maximized at 60 percent of the fixed salary and maximized at 80 percent of the fixed salary for other members of Group management. Variable remuneration within the framework of the Company’s Long-Term Incentive Plan (“LTIP”) is not to exceed 40 percent of the fixed annual salary for the President and 50 percent of the fixed annual salary for other members of the Group management.

Outstanding Incentive Programs

  • Incentive Scheme 2016

On May 2, 2016, Loomis’ Annual General Meeting resolved to introduce an incentive scheme (“Incentive Scheme 2016”), equivalent to Incentive Scheme 2015. This Incentive Scheme involves two thirds of the variable remuneration being paid out in cash after the year it was earned. As regards the remaining one third, shares shall be transferred to the employees no later than June 30, 2018. The allotment of shares is contingent upon the employee still being employed by the Loomis Group on the last day of February, 2018. Loomis will secure the delivery of the shares according to above by entering into a share swap agreement with a third party, whereby the third party in its own name shall acquire and transfer shares to the employees.

The introduction of the incentive scheme enables managers within Loomis to become shareholders in the Group over time and will thereby increase participation in Loomis’ success and development, which will benefit all of the shareholders. The Incentive Scheme 2016 covers approximately 350 of Loomis’ employees.

  • Incentive Scheme 2017

On May 4, 2017, Loomis’ Annual General Meeting resolved to introduce an incentive scheme (“Incentive Scheme 2017”), equivalent to Incentive Scheme 2016. This Incentive Scheme involves two thirds of the variable remuneration being paid out in cash after the year it was earned. As regards the remaining one third, shares shall be transferred to the employees no later than June 30, 2019. The allotment of shares is contingent upon the employee still being employed by the Loomis Group on the last day of February, 2019. Loomis will secure the delivery of the shares according to above by entering into a share swap agreement with a third party, whereby the third party in its own name shall acquire and transfer shares to the employees.

The introduction of the incentive scheme enables managers within Loomis to become shareholders in the Group over time and will thereby increase participation in Loomis’ success and development, which will benefit all of the shareholders. The Incentive Scheme 2017 covers approximately 350 of Loomis’ employees.