To be able to recruit and retain the right staff, AP2 strives to remunerate its employees at a level that is motivating and consistent with the industry at large.

The board’s area of ​​responsibility

The Board of Directors of AP2 determines the guidelines for remuneration to senior executives. These guidelines are reviewed annually by the Board and shall be compatible with Swedish Government guidelines for terms of employment in the AP Funds. This refers to the decision-making process as well as the construction and assessment of reasonable and appropriate remuneration within the Fund. It is the responsibility of the entire Board of Directors to determine the remuneration of the CEO. The Board shall also ensure that the remuneration of both the CEO and other senior executives falls within the Board’s guidelines. This shall be done by the Remuneration Committee annually at a Board meeting submitting a report on the remuneration of the CEO and the management team. On this occasion, the CEO must also report on other employees’ remuneration in relation to the Government’s guidelines.

Remuneration Committee

The Remuneration Committee consists of the Fund’s Chairman and Vice Chairman. The CEO is usually co-opted to the Remuneration Committee’s meetings. The CEO does not participate in the committee’s preparation of his remuneration. The Remuneration Committee is a preparatory body for the Board with regard to remuneration levels for the Fund’s CEO, guidelines for remuneration to the Fund’s management team (Fund Management) and in matters concerning incentive programs for the Fund’s employees. The decisions made by the Remuneration Committee shall be notified to the Board at the next subsequent Board meeting.


The total remuneration to senior executives must be reasonable and well-balanced. It must also be competitive, determined, and appropriate, and contribute to a good ethic and organizational culture. The remuneration shall not be salary-leading in relation to comparable institutions, but shall be characterized by moderation.

The total compensation consists of:

  • Basic salary – Each senior executive must receive a basic salary.
  • Pension – With regard to guidelines on pensions and other insurance cover for senior executives, AP2 applies accordingly collective agreement (BAO / Jusek).
  • Other benefits – The total value of benefits shall in relation to the total compensation constitute a limited value. Benefits are, for example, health insurance and wellness benefits.

Opportunity for salary change salary towards pension is offered.

The Government’s guidelines state a six-month notice period with 18 months’ severance pay for senior executives. Senior executives at AP2, employed before the Government’s guidelines enter into force, have a 12-month notice period without severance pay. These have not been renegotiated, as this would entail a higher cost for the Fund. However, the total cost of a dismissal is within a good margin within the Government’s guidelines.

The CEO’s employment contract

In the CEO’s employment agreement, the Fund undertakes to pay premiums for occupational pension and health insurance with a retirement age of 65 with an annual premium corresponding to 30 percent of gross salary. In the event of termination by the Fund, the CEO is entitled to severance pay, corresponding to 18 months’ salary in addition to salary during the notice period of 6 months, reduced by income from new employment. The severance pay is calculated on the cash monthly salary at the end of the notice period.

Board follow-up

AP2 has for more than ten years participated in the independent analysis company Towers Watson’s salary and benefits survey. They annually produce comparative statistics for individual positions among relevant and comparable players in the financial industry. The purpose of the survey is to report market salary and employment conditions for different positions, based on the information of the participating companies. These salary statistics have been used by AP2 to compare the remuneration levels for all of the Fund’s employees.

The starting point is that the Fund’s total remuneration should be around the median for the comparison group in Towers Watson’s salary and benefit survey. However, there may be certain positions that end up above the median, as these require specialist skills that are deemed important for the business.

The Board’s assessment is that the remuneration levels for both senior executives and the Fund’s other employees are reasonable, well-balanced, competitive, ceiling-fixed and appropriate, and contribute to good ethics and organizational culture. Remuneration is not salary-leading in relation to comparable institutions, but is characterized by moderation and falls well within the starting point set by the Board for remuneration to employees. The Board considers that the Fund follows the Government’s guidelines regarding remuneration, except for the notice period. However, the total cost of a dismissal is within a good margin within the Government’s guidelines.

Board fees

Fees and remuneration to board members are determined by the government. The remuneration amounts to SEK 200,000 per year for the chairman, SEK 150,000 for the vice chairman and SEK 100,000 to the other members. The government has decided that compensation can be paid in a total of SEK 100,000 for committee work. No fees have been paid for the board members’ work in the Remuneration Committee. Remuneration of SEK 30,000 has been paid to the Chairman and SEK 25,000 to a member for work in the Risk Committee. Remuneration of SEK 20,000 has been paid to the Chairman and SEK 15,000 to a member for work in the Audit Committee.


AP2 reports remuneration to senior executives in the same way as listed companies. This means that the Fund complies with the special rules on reporting remuneration to senior executives that apply to listed companies and public limited companies. The rules for this are found mainly in the Swedish Companies Act (2005: 551) and in the Annual Accounts Act (1995: 1554). Remuneration for senior executives is reported separately with regard to fixed salary, benefits and severance pay.

The Board of Directors of AP2 reports in the Annual Report whether previously decided guidelines have been followed or not and the reasons for any deviation. Furthermore, the auditors must attach a written and signed opinion to the auditor’s report regarding whether they consider that the guidelines that have applied for the financial year have been followed.

The AP Funds’ common policy for remuneration, employee benefits, representation and business travel, in Swedish