New rules on executive remuneration in Sweden feature in a bill (Swedish) that aims to give effect to the European Union’s (EU) shareholder rights directive. The parliament will vote on the proposals later this spring — EU member states must implement the directive into national laws by 10 Jun 2019.
Highlights of the bill include the following:
Companies would have to publish a separate annual remuneration report that describes the fixed and variable remuneration. The report would need to compare the remuneration paid to executives with the company’s results and the average remuneration paid to employees other than directors calculated over the previous five-year period. The report must also explain the extent to which employees’ remuneration informed the salary decisions for the company’s CEO and deputy. An advisory vote on the report would be taken at the annual shareholders’ meeting.