Employees and development

Principles for remuneration to senior executives

Ahead of the Annual General Meeting in May 2026, the Board of Directors has decided to propose unchanged guidelines for remuneration to senior executives compared with those adopted at the Annual General Meeting in May 2024:

The guidelines shall be applied to remuneration agreed after the Annual General Meeting 2025 and to changes in already agreed remuneration made thereafter. The guidelines do not cover remuneration resolved by the General Meeting. With regard to employment relationships governed by rules other than Swedish, and in respect of pension benefits and other benefits, appropriate adjustments may be made to comply with such mandatory rules or established local practice, whereby the overall purpose of these guidelines shall be met as far as possible. What is stated regarding the Company shall also apply, where relevant, to the Group.

Promotion of the Company’s business strategy, long-term interests and sustainability

Successful implementation of the Company’s business strategy and safeguarding of its long-term interests, including its sustainability, require that the Company can recruit and retain qualified employees. To this end, AddLife must be able to offer competitive total remuneration, which these guidelines enable. Total remuneration shall be market-based and competitive and shall be related to responsibilities and powers.

Forms of remuneration, etc.

Remuneration shall be market-based and consist of the following components: fixed salary, any variable remuneration under a separate agreement, pension and other benefits. In addition – and independently of these guidelines – the General Meeting may resolve on, for example, share-based and share price-related remuneration.

Fixed salary
Fixed salary shall consist of fixed cash salary and shall be reviewed annually. Fixed salary shall be competitive and reflect the requirements of the position in terms of competence, responsibility and complexity, and how it contributes to the achievement of the business objectives. Fixed salary shall also reflect the performance achieved by the executive and shall therefore be individual and differentiated.

Variable salary
In addition to fixed salary, the CEO and other senior executives may, according to separate agreements, receive variable salary when fulfilling agreed performance criteria. Any variable salary shall consist of an annual variable cash salary and may amount to a maximum of 40 percent of the fixed annual salary.

The variable remuneration shall be linked to one or more predetermined and measurable criteria established by the Board of Directors and may be financial, such as the Group’s earnings growth, profitability and cash flow, or non‑financial, such as individual targets designed to promote the Company’s business strategy and long‑term interests. By linking the executives’ remuneration to the Company’s performance, the targets support the implementation of the Company’s business strategy, long‑term interests and competitiveness. The terms and basis for calculation of variable remuneration shall be determined for each financial year. Fulfilment of the criteria for payment of variable remuneration shall be measurable over a period of one year.

The extent to which the criteria for awarding variable cash remuneration has been satisfied shall be determined when the measurement period has ended. The Board is responsible for the evaluation so far as it concerns variable remuneration to the CEO. For variable cash remuneration to other senior executives, the CEO is responsible for the evaluation. For financial objectives, the evaluation shall be based on the latest publicly available financial information from the company.

The conditions for variable remuneration shall be designed so that, if exceptional financial conditions prevail, the Board of Directors has the possibility to limit or refrain from paying variable remuneration if such action is deemed reasonable.

Additional variable cash remuneration may be paid in extraordinary circumstances, provided that such extraordinary arrangements are time‑limited and made only at the individual level either for the purpose of recruiting or retaining executives, or as compensation for extraordinary work in addition to the person’s ordinary duties. Such remuneration may not exceed an amount corresponding to 50 percent of the fixed annual salary and may not be paid more than once per year and per individual. Decisions on such remuneration shall be made by the Board of Directors on recommendation from the Remuneration Committee.

Pension
For the CEO, pension benefits, including health insurance, shall be defined‑contribution and the premiums shall not exceed 30 percent of the fixed annual salary. For other senior executives, pension benefits, including health insurance, shall be defined‑contribution unless the executive is covered by defined‑benefit pension under mandatory collective agreement provisions. Premiums for defined‑contribution pensions shall be in the form of alternative ITP, in accordance with the premium ladder set out in AddLife’s pension policy, or shall not exceed 30 percent of the fixed annual salary.

Variable remuneration shall be pensionable to the extent that this follows from mandatory collective agreement provisions applicable to the executive (applies to Sweden and defined‑contribution pensions).

Other benefits
Other benefits, which may include car benefits, travel benefits, domestic services and health insurance, shall be market‑based and only constitute a limited portion of total remuneration. Premiums and other costs arising from such benefits may in total amount to a maximum of 10 percent of the fixed annual salary.

Conditions on termination

For the CEO and other senior executives, the notice period shall be 6 months in the event of termination by the executive. In the event of termination by the Company, a notice period of a maximum of 6 months shall apply. In the event of termination by the Company, severance pay may be paid in an amount corresponding to a maximum of 9 months’ fixed salary. No severance pay is paid in the event of resignation by the executive.

In addition, compensation may be paid for any non‑compete undertakings. Such compensation shall offset any loss of income and shall only be paid to the extent that the former executive is not entitled to severance pay. The compensation shall be based on the fixed salary at the time of termination and may amount to a maximum of 60 percent of the fixed salary at the time of termination, unless otherwise follows from mandatory collective agreement provisions, and shall be paid during the period for which the non‑compete undertaking applies, which shall be a maximum of 24 months after the termination of employment.

Fees to Board members

In special cases, Board members elected by the General Meeting of AddLife may be remunerated for services within their respective areas of expertise that do not constitute Board work, for a limited period. For these services (including services performed through a company wholly owned by a Board member), a market‑based fee shall be paid, provided that such services contribute to the implementation of AddLife’s business strategy and the safeguarding of AddLife’s long‑term interests, including its sustainability. Such consultancy fees may never exceed twice the annual Board fee for each Board member.

Salaries and terms of employment for employees

In preparing the Board of Directors’ proposal for these remuneration guidelines, salaries and terms of employment for the Company’s employees have been taken into account, in that information on employees’ total remuneration, the components of the remuneration and the increase and rate of increase over time has formed part of the Remuneration Committee’s and the Board’s decision‑making basis when evaluating the appropriateness of the guidelines and the limitations that follow from them.

Preparation and decision‑making process

The Board of Directors has established a Remuneration Committee. The tasks of the Committee include, among other things, preparing principles for remuneration to senior executives and the Board’s decision on proposals for guidelines for remuneration to senior executives. The Board of Directors shall draw up proposals for new guidelines at least every four years and present the proposal for resolution at the Annual General Meeting. The guidelines shall apply until new guidelines are adopted by the General Meeting. The Remuneration Committee shall also monitor and evaluate programmes for variable remuneration to senior executives, the application of the guidelines for remuneration to senior executives, and current remuneration structures and remuneration levels in the Company. Remuneration to the CEO shall be decided within the framework of the approved principles by the Board of Directors following preparation and recommendation from the Remuneration Committee. Remuneration to other senior executives shall be decided by the CEO within the framework of the established principles and after consultation with the Remuneration Committee. When the Board of Directors considers and resolves on remuneration‑related matters, the CEO and other senior executives do not participate to the extent that they are affected by the matters.

Deviations from the guidelines

The Board of Directors may decide to deviate from the guidelines, in whole or in part, if in an individual case there are special reasons for doing so and a deviation is necessary to meet the Company’s long‑term interests, including its sustainability, or to ensure the Company’s financial viability. As stated above, it is part of the tasks of the Remuneration Committee to prepare the Board’s decisions in remuneration matters, which includes decisions on deviations from the guidelines.