Remuneration to the Executive Management Team

Remuneration to the President and CEO and the Executive Management Team is shown in the table below. Salaries and other remuneration as well as quantitative and qualitative targets are set for the President and CEO on an annual basis by the Remuneration Committee, which are then ratified by the Board of Directors. The President and CEO sets targets for the Executive Management Team, which are ratified by the Remuneration Committee. The Remuneration Committee also approves the Executive Management Team’s salaries and remuneration, which are reported to the Board of Directors. Targets for other employees are set by each line manager respectively.

Fixed salary
For the members of OMX’s Executive Management Team, a review is conducted every second year, apart from the President and CEO, for whom a review is conducted every three years. The review takes into consideration the salary trend in the market, employees’ performance, changes in areas of responsibility, the company’s
development and local agreements and rules.
 

Variable salary 2007 (Short Term Incentive)
The “OMX Short Term Incentive 2007” program for variable remuneration comprised about 200 managers and other key employees. The total maximum variable portion that can be paid for 2007 is SEK 43 m, excluding social security expenses. In 2007, the program comprised financial and individual goals, of which 60 percent are financial goals and 40 percent individual goals. The financial goal for 2007 was related to budgeted operating profit for OMX. Of the maximum SEK 26 m that comprised the financial portion, approximately SEK 17 m will be paid. The estimated payment of the individual portion is calculated at 75 percent of the maximum SEK 17 m. The total outcome for 2007 is estimated at SEK 30 m, excluding social security expenses.
 

Pensions
OMX offers its employees a premium-based occupational pension unless other arrangements are defined in local agreements or other regulations. OMX’s pension plan for employees in Sweden offers the employees a market-rate occupational pension. OMX’s President and CEO Magnus Böcker receives a premium-based pension benefit. The total pension provision amounts to 30 percent of fixed salary.
Other members of Group management are included in the OMX pension plan, with the exception of Jukka Ruuska and Hans-Ole Jochumsen. Jukka Ruuska is included in the pension plan stipulated by the Finnish labor market regulations. Current premiums for Jukka Ruuska are equivalent to a pension provision of 17 percent of total remuneration. Hans-Ole Jochumsen, is included in the pension plan stipulated by Danish labor market practice. Current premiums for Hans-Ole Jochumsen are equivalent to a pension provision of 20 percent of fixed remuneration.
Retirement age for employees, including the President and CEO and the Executive Management Team, is 65 years.
 

Other benefits
In general, OMX does not offer any benefits in addition to those that constitute local practice. Members of the Executive Management Team are entitled to medical insurance.
Severance terms
Periods of notice of twelve months on the part of the Company and six months on the part of the employee apply between OMX and the President. In the event of notice being served by the company, the President shall receive severance payment corresponding to fixed salary and other benefits (occupational pension and insurance, including healthcare insurance) for the period of notice. In addition, the President receives a severance payment of six months fixed salary. Members of Management have periods of notice of 12 months on the part of the company and six months on the part of the employee. Jukka Ruuska, President Nordic Marketplaces and Hans-Ole Jochumsen, President Information Services & New Markets also have a severance payment of six months’ fixed salary. The president and other senior executives have a competition clause comprising 12 months. In event of noncompliance, the clause contains penalties.
Since January 1, 2007, President Magnus Böcker has had a clause in his employment contract that entitles him to six months’ compensation in the event of a change of ownership by which Magnus Böcker’s role changes and he opts to leave the company because of this. The primary reason for adding this clause is to promote a change of ownership regardless of the impact this has on Magnus Böcker’s own position. In 2007, Jukka Ruuska, President Nordic Marketplaces, also had a clause added to his employment contracts entitling him to six months’ salary as compensation in the event of a change of ownership for the same reasons.

REMUNERATION TO EXECUTIVE MANAGEMENT TEAM

 

1) Refers primarily to the divestment of 76,000 employee stock options.
2) Executive Management, others comprised the following six persons in 2007: President of Nordic Marketplaces, Jukka Ruuska; President of Market Technology, Markus Gerdien; Chief Financial Officer, Kristina Schauman; President of Information Services and New Markets, Hans-Ole Jochumsen, and the President of Marketing & Communications Bo Svefors.