G4 Personnel information and remuneration of management
|
2024 |
2025 |
||
|---|---|---|---|---|
|
Number |
Women % |
Number |
Women % |
Sweden |
5,325 |
29 |
5,192 |
29 |
Rest of Europe |
12,599 |
22 |
12,370 |
20 |
Total Europe |
17,923 |
24 |
17,561 |
23 |
North America |
6,317 |
20 |
6,212 |
21 |
South America |
2,709 |
20 |
2,817 |
25 |
Africa, Middle East |
3,219 |
20 |
3,381 |
19 |
Asia |
8,708 |
18 |
9,308 |
19 |
Australia |
2,286 |
20 |
2,345 |
20 |
Total |
41,162 |
21 |
41,624 |
21 |
|
2024 |
2025 |
|---|---|---|
Wages, salaries and other remuneration |
–26,798 |
–26,793 |
Social costs |
–3,455 |
–3,344 |
Pension costs |
–1,596 |
–1,617 |
Total |
–31,850 |
–31,753 |
|
2024 |
2025 |
|---|---|---|
Sweden |
–3,829 |
–3,927 |
Rest of Europe |
–9,632 |
–9,728 |
Total Europe |
–13,461 |
–13,655 |
North America |
–5,767 |
–5,151 |
South America |
–1,029 |
–1,038 |
Africa, Middle East |
–1,408 |
–1,501 |
Asia |
–2,769 |
–3,086 |
Australia |
–2,365 |
–2,362 |
Total |
–26,798 |
–26,793 |
of which, to Boards of Directors and presidents |
|
|
Salaries and other remuneration |
–971 |
–932 |
of which, variable salary |
–157 |
–182 |
Proportion of women, % |
2024 |
2025 |
|---|---|---|
Gender distribution in senior management |
19 |
21 |
Other senior executives |
26 |
27 |
Remuneration to the board of directors
Fees to the Chairman and other external Board members are paid in accordance with the resolution at the Annual General Meeting. No Board fees are paid to the President and the employee representatives. In accordance with the resolution of the 2025 Annual General Meeting, the total fee to the external Board members elected at the Meeting amounts to in total SEK 8,105,000 on an annual basis.
|
2024 |
||||||
|---|---|---|---|---|---|---|---|
SEK |
Board fee |
Audit Committee fee |
Remuneration Committee |
Acquisition and Divestitures Committee |
Total Board and Committee fee |
||
Johan Molin |
–3,000,000 |
–200,000 |
–167,000 |
–226,000 |
–3,593,000 |
||
Claes Boustedt |
–800,000 |
–352,000 |
– |
–167,000 |
–1,319,000 |
||
Marika Fredriksson |
–800,000 |
– |
– |
– |
–800,000 |
||
Andreas Nordbrandt |
–800,000 |
– |
– |
– |
–800,000 |
||
Susanna Schneeberger1) |
–800,000 |
– |
– |
– |
–800,000 |
||
Helena Stjernholm |
–800,000 |
–200,000 |
–132,000 |
–167,000 |
–1,299,000 |
||
Kai Wärn |
–800,000 |
– |
–132,000 |
– |
–932,000 |
||
Total |
–7,800,000 |
–752,000 |
–431,000 |
–560,000 |
–9,543,000 |
||
|
|||||||
|
2025 |
||||
|---|---|---|---|---|---|
SEK |
Board fee |
Audit Committee fee |
Remuneration Committee |
Acquisition and Divestitures Committee |
Total Board and Committee fee |
Johan Molin |
–3,125,000 |
–210,000 |
–175,000 |
–237,000 |
–3,747,000 |
Claes Boustedt |
–830,000 |
–370,000 |
|
–175,000 |
–1,375,000 |
Marika Fredriksson |
–830,000 |
|
|
|
–830,000 |
Andreas Nordbrandt |
–830,000 |
|
|
|
–830,000 |
Susanna Schneeberger |
–830,000 |
|
|
|
–830,000 |
Helena Stjernholm |
–830,000 |
–210,000 |
–138,000 |
–175,000 |
–1,353,000 |
Kai Wärn |
–830,000 |
|
–138,000 |
|
–968,000 |
Total |
–8,105,000 |
–790,000 |
–451,000 |
–587,000 |
–9,933,000 |
President and other senior executives
Guidelines for remuneration
For information on the current guidelines for remuneration of senior executives, adopted by the 2024 Annual General Meeting, please refer to the Directors' report.
President and CEO
Sandvik’s President and CEO, Stefan Widing, was paid an annual fixed salary of SEK 17,160,000 and received a fringe benefit value of a car provided by the company. In addition, the President and CEO was paid an annual cash-based salary with a maximum value of 75 percent of the annual fixed salary. The variable cash-based salary for 2025 amounted to SEK 11,266,076 being 88 percent of the maximum value.
Stefan Widing is entitled to retire at age 65. A pension premium of 37.5 percent of his annual fixed salary is reserved annually. In the event of termination of employment by the company, Stefan Widing has a notice period of 12 months and 12 months’ severance pay.
Other senior executives
The members of the Group Executive Management in Sweden receive an occupational pension plan limited to 35 percent of their annual base salary. The pension plan entails savings to pension, contributions for disability pension, insurance, and supplementary disability and survivor’s pension. One member of the Group Executive Management is based in Switzerland and covered by a Swiss pension plan amounting to 21 percent of annual base salary, whereof 75 percent is paid by the company and 25 percent by the employee. Another member based in the UK, is covered by a UK salary supplement plan amounting to 12 percent of the annual base salary. The minimum retirement age is 62.
Severance pay is paid in the event that the company terminates employment. The severance pay equals 6–12 months of fixed salary in addition to the notice period, which is 6–12 months. Any other income from employment may be deducted from the severance pay.
External remuneration market data for benchmarking is used as guidance. A sign-on bonus was paid in 2025.
Position |
Fixed salary |
Annual variable salary3) |
Other benefits4) |
Long-term variable salary5) |
Pension costs6) |
||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
President and CEO |
–16,748,6781) |
–1,477,824 |
–159,196 |
–5,465,050 |
–7,345,166 |
||||||||||||||
Other senior executives7) |
–45,582,3342) |
–4,887,342 |
–1,426,931 |
–9,562,355 |
–13,433,296 |
||||||||||||||
Total |
–62,331,012 |
–6,365,166 |
–1,586,127 |
–15,027,405 |
–20,778,462 |
||||||||||||||
|
|||||||||||||||||||
Position |
Fixed salary |
Annual variable salary3) |
Other benefits4) |
Long-term variable salary5) |
Pension costs6) |
||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
President and CEO |
–17,503,2001) |
–11,266,076 |
–162,009 |
–2,208,243 |
–6,332,794 |
||||||||||||||
Other senior executives7) |
–54,572,4582) |
–20,200,432 |
–1,527,909 |
–4,515,363 |
–13,183,577 |
||||||||||||||
Total |
–72,075,658 |
–31,466,508 |
–1,689,918 |
–6,723,606 |
–19,516,371 |
||||||||||||||
|
|||||||||||||||||||
Long-term incentive programs (LTI)
Share-based incentive program 2022–2025
The 2022-2025 Annual General Meetings approved the Board’s proposal to adopt a performance share program for each year for a maximum 350 senior executives and key individuals in the Sandvik Group, divided into four categories. For all participants, a personal investment is required in each separate program and the programs encompass at grant a maximum total of 5,103,030 shares.
All program participants have invested in Sandvik shares (“investment shares”), up to an amount corresponding to 10 percent of their fixed annual pre-tax salary at the time of the investment.
Performance shares
In LTI 2022-2025, Sandvik shares may be allotted provided certain performance targets are met (“performances shares”). The maximum number of performance shares that may be allotted for each acquired investment share depends on the category to which the participant belongs.
The number of performance shares that will finally be allotted to the participant for each acquired investment share is dependent on the development of the Sandvik Group adjusted earnings per share (“EPS”) during the financial year that the investment shares were acquired, compared to adjusted EPS for the previous financial year.
In January 2022-2025 the Board of Directors established the levels regarding adjusted EPS for the performance year in question that had to be attained for allotment of a certain number of performance shares.
Performance outcome 2022–2025
LTI 2022: Performance shares were allotted since the performance targets set by the Board of Directors were met. The LTI adjusted EPS for the 2022 financial year amounted to SEK 12.89.
LTI 2023: Performance shares were partly allotted since the performance targets set by the Board of Directors were partly met. The adjusted EPS for the 2023 financial year amounted to SEK 14.04.
LTI 2024: No performance shares were allotted since the performance targets set by the Board of Directors were not met. EPS for the 2024 financial year amounted to SEK 13.11. There will be no allotment of shares under LTI 2024.
LTI 2025: Performance shares were partly allotted since the performance targets set by the Board of Directors were partly met. EPS for the 2025 financial year amounted to SEK 13.27.
The number of allotted performance shares under the 2022-2025 LTI programs for the President and other members of the Group Executive Management on Dec 31, 2025, corresponds to the number of outstanding performance shares at year-end.
The allotments of performance shares in ongoing programs requires continuous employment and that all investment shares are held during a period of three years from the acquisition of the investment shares.
Costs for the programs
The following IFRS2 provisions were established during the year:
For LTI 2023, SEK 31.2 million (excluding social costs), of which SEK 4.8 million for the President and CEO, and other senior executives.
For LTI 2024, no IFRS2 provisions were made during 2020 since the performance targets set by the Board of Directors were not met.
For LTI 2025, SEK 18.4 million (excluding social costs), of which SEK 2.0 million for the President and CEO, and other senior executives.
The employee performance shares are expensed as an employee expense (excluding social costs) over the vesting period and are recognized directly against equity. The amount recognized is continuously revised throughout the vesting period of each program. Social costs are expensed during the vesting period of each program based on the change in value of the employee performance shares.
Preparation and decision-making process
The Board’s Remuneration Committee prepares issues relating to the Group Executive Management’s remuneration. The Committee met three times during the year. Items dealt with included the distribution between fixed and variable salary, the magnitude of any pay increases and both the short- and long-term variable incentive programs.
The Board discussed the Remuneration Committee’s proposals and made a decision, using the Committee’s proposal as a basis. Based on the Remuneration Committee’s proposals, the Board decided on the remuneration of the President for 2025. The President decided on remuneration to other senior executives after consultation with the Remuneration Committee. The Remuneration Committee performed its task supported by expertise on remuneration levels and structures. For information on the composition of the Committee, refer to the Corporate Governance Report.
Assumptions |
Program 2022 (on date of issue) |
Program 2023 (on date of issue) |
Program 2024 (on date of issue) |
Program 2025 (on date of issue) |
||
|---|---|---|---|---|---|---|
Share price, SEK |
201.60 |
198.35 |
238.10 |
213.80 |
||
Present value of forecasted future dividends, SEK1) |
17.32 |
16.77 |
18.09 |
17.25 |
||
Risk-free interest rate, % |
0.40 |
3.23 |
3.74 |
2.04 |
||
|
||||||
|
Performance |
Performance |
Performance |
Performance |
|---|---|---|---|---|
Outstanding at beginning of year |
1,023,210 |
562,183 |
– |
– |
Allotted during the period |
– |
– |
– |
1,433,710 |
Vested during the year |
1,009,123 |
2,298 |
– |
– |
Forfeited during the year |
14,087 |
46,884 |
– |
1,176,307 |
Transferred during the year |
– |
– |
– |
– |
Outstanding at year-end |
– |
513,001 |
– |
257,403 |
Theoretical value when allotted acc. to Black-Scholes, SEK |
184.28 |
181.58 |
220.01 |
196.55 |
|
Performance |
Performance |
Performance |
Performance |
|---|---|---|---|---|
Outstanding at beginning of year |
196,182 |
97,443 |
– |
– |
Allotted during the period |
– |
– |
– |
218,309 |
Vested during the year |
202,808 |
– |
– |
– |
Forfeited during the year |
– |
16,523 |
– |
184,951 |
Transferred during the year |
6,626 |
– |
– |
– |
Outstanding at year-end |
0 |
80,920 |
– |
33,358 |
Theoretical value when allotted acc. to Black-Scholes, SEK |
184.28 |
181.58 |
220.01 |
196.55 |
§ Accounting principles
Share-based payments refer to remuneration to employees in accordance with employee share saving programs.
The costs for the employee performance shares are expensed as an employee expense (excluding social costs) over the vesting period and are recognized directly against equity. The amount recognized is continuously revised throughout the vesting period of each program. Social costs are expensed during the vesting period of each program based on the change in value of the employee performance shares.
The share-based program, performance share consists of the rights to provide entitlement to shares subject to the same conditions and if goals relating to operating performance are achieved. The amount recognized as an expense is adjusted to reflect the actual number of shares vested.
In order to meet its commitments under the share saving program, Sandvik has entered into an equity swap agreement with a financial institution. Under the agreement, the financial institution undertakes to distribute Sandvik shares to participants in the program when the date for allotment occurs in accordance with the terms and conditions of the program.
The fair value of the Sandvik share when the swap agreement was signed is recognized as a financial liability and as a reduction of equity in accordance with IAS 32. Social costs relating to share-based payments to employees are expensed over the accounting periods during which the services are provided. The charge is based on the fair value of the options at the reporting date. The fair value is calculated using the same formula as that used when the options were granted.