The following document includes the guidelines for remuneration to the executive management which was approved by the Annual General Meeting 2021.
Proposal of the Board of Directors in respect of guidelines for remuneration to the executive management.PDF (PDF document, 62 kB)
The following document includes the Board of Directors’ remuneration report which was approved by the Annual General Meeting 2021.
The Board of Directors remuneration report for the financial year 2020.PDF (PDF document, 89 kB)
An overall objective of the operations of Castellum is to create a sound development of shareholder value over time. The operations of the Castellum group is focused on cash-flow growth, i e income from property management per share, to limited operational risk. This intends to increase value within the group at low financial risk, and at the same time offer a competitive share dividend to the shareholders. The structure of the incentive program is based on the objective to align the interests of the group executive management with the interests of the shareholders by way of the group executive management also being shareholders of Castellum and by increasing the share of the total remuneration which is connected to the development of the group.
Castellum’s incentive plan—resolved by the 2019 AGM and essentially comprising a renewal of the previous plan—consists of two parts, one part which is based on the annual profit based remuneration and one part which is based on the total return on the Castellum share over a three-year period.
• One profit-based component is based on growth in income from property management compared to the previous year, as well as an overall estimation of development for certain individual factors. Full outcome requires that growth in income from property management per share reaches 10% per year. When growth is in the 0–10% range, a linear calculation of the incentive is made. The profit-based component is paid out yearly as salary after the year-end closing and can total no more than six months’ salary per year.
• One share price-based component, based on the total yield on the Castellum share during a three-year period, both in nominal figures and compared with index for property shares in Sweden, the Eurozone and the UK. For full outcome of the incentive plan, the total yield must be at least 50% during the period and the total yield has to exceed index development by at least 5 percentage points during the period. When growth is in the 0–50% and 0–5 percentage points ranges respectively, a linear calculation of the incentive is made. Any payments due are paid as salary after the measurement period of June 2020–May 2023. During the three-year period, the share price based portion may total no more than one and a half years’ salary.
Executives in receipt of variable remuneration according to the incentive plan must acquire Castellum shares for at least half of the amount of the payment due after tax. The paid incentive does not affect pensionable contributions.
Current incentive plan applies for the period from 2020 to 2022 for the earnings-based component and from June, 2020 to May, 2023 for the share price-related component.