Remuneration of the Leadership Team

The remuneration of the Kalmar Leadership Team (KLT) members is decided by the Board, based on the proposals by the CEO and the PRC.

The total remuneration of the KLT members may consist of fixed salary, pension, other benefits and short- and long-term incentives. The members of the KLT are typically offered, but not limited to, the same taxable and non-taxable benefits and pension plans that are available to employees in their home country.

Fixed salary

Fixed salary is set to a competitive level to retain and attract talent, and it consists of a base salary and possible fringe benefits.

Short-term incentives

The short-term incentive (STI) is a performance based bonus scheme that typically consists of a one-year performance period. The Board decides the performance criteria separately for each performance period. In 2025, the STI plan is based on comparable operating profit and cash flow (80% weight) as well as strategic targets related to safety and leadership development (20% weight). 

For the KLT members the earning opportunity varies depending on the role and is at target level achievement  40-50% and at maximum achievement level 80-100% of annual base salary.

The Board evaluates the performance after each performance period and approves the payments. The rewards based on the STI plan 2025 will be paid in H1 / 2026. 

Long-term incentives

KLT members are eligible to participate in the long-term incentive plans, and the main instrument is the Performance Share Plan. The earning opportunity varies according to the role and corresponds at target level to 60-80% of the annual base salary at grant of each plan. The maximum earning opportunity is two times the target reward, i.e., 120-160% of the annual base salary. 

The currently active long-term incentive plans are described in more detail in the section “Share-based incentive plans”.

Other terms

The period of termination notice for the Leadership Team members is six (6) months on their and on the Company’s side. The severance pay (if the company terminates the agreement) equals to six (6) months’ notice period.

Kalmar does not offer at the moment supplementary pension plans for KLT members and the pension contributions are based on the local legislation and practices.

Paid remuneration in 2024

The actual paid remuneration for the KLT is presented in the table below. As Kalmar was incorporated in July 2024, the paid remuneration is presented only for the H2 / 2024.