Remunerations

The PION Group's senior executives make up the group's management team and consist of the CEO/managing director of the parent company, market area managers in Poolia, Uniflex and QRIOS, CFO, HR Director and CMO. According to the board, the AGM 2023 decided on proposals that are consistent with previously applied guidelines for remuneration to senior executives where the variable remuneration can reach a maximum of 100 percent of the fixed salary.

Motive
A successful implementation of PION Group's business and sustainability strategy as well as safeguarding its long-term interests requires that PION Group can recruit and retain management with good competence and the capacity to reach set goals. This requires that senior executives can be offered a competitive remuneration. These guidelines contribute to PION Group's business strategy, long-term interests and sustainability by providing the opportunity to offer senior executives such a competitive remuneration.

Forms of compensation
Remuneration for senior executives must be market-based and competitive. Compensation may be paid in fixed cash salary (basic salary), variable compensation, pension and other benefits. The remuneration is based on the individual's commitment and performance in relation to pre-set goals, both individual and common goals for the entire company. Evaluation of the individual performance takes place continuously.

Fixed salary
Remuneration for senior executives must be market-based and competitive. The fixed salary must be individual for each individual executive. The fixed salary must be reviewed regularly (usually annually) and is based on the executive's position, responsibility, competence, experience and performance.

Variable compensation
Variable compensation must be based on predetermined and measurable criteria, designed to promote long-term value creation. The variable remuneration must be proportionate to the executive's responsibilities and performance and may correspond to no more than 80 percent of the CEO's annual fixed salary and no more than 100 percent of the other senior executives' annual fixed salary. The variable compensation must be based on the revenue and/or profit development of the own area of responsibility and the group.

Other remuneration and terms of employment
The CEO has, in addition to pension benefits according to the General Insurance Act, a personal pension agreement according to market conditions. Other senior executives are covered by defined contribution pension plans which essentially correspond to the premium level for the ITP plan. The ordinary retirement age follows the retirement age established by law.

For senior executives, the notice period for termination by the Company shall be a maximum of twelve months, while the notice period for termination by the senior executive shall be a maximum of six months. Severance pay is not paid. Compensation can be paid for undertaking to restrict competition. Such compensation shall compensate for any loss of income and shall only be paid to the extent that the former senior executive is not entitled to severance pay. The compensation may amount to no more than 100 percent of the senior executive's fixed salary at the time of termination, unless otherwise required by law, mandatory collective agreement provisions or established practice. Such compensation may be paid during the time that the commitment to limit competition applies, which may not exceed 12 months after the termination of employment.

Departing from the guidelines
The board may decide to temporarily depart from the guidelines (in whole or in part), if in an individual case there are special reasons for it and a departure is necessary to satisfy the company's long-term interests and sustainability or to ensure the group's financial viability.

Share-based incentive programs
Decisions on any share-related or share price-related incentive programs aimed at senior executives are made by the general meeting.

There are no share-related or share price-related incentive programs.