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Group CEO

Forms of Remuneration

The Group CEO Torbjörn Magnusson started in the position on 1 January 2020.

The remuneration of the Group CEO is reviewed annually and is based on the Sampo Group Remuneration Principles and Sampo plc´s Remuneration Policy for Governing Bodies. The remuneration includes fixed salary, fringe benefits and a supplementary defined contribution pension contract, and may also include payments from short-term incentive programs and long-term incentive schemes. Below is an overview of the remuneration of the Group CEO. For full details on the 2020-2021 remuneration of the Group CEO, see the Remuneration Report for Governing Bodies 2021.

Fixed Salary

The fixed salary of the Group CEO amounts to SEK 10,283,060 annually.

Fringe Benefits

The Group CEO’s fringe benefits include lunch benefit, health insurance and compensation for an annual travel pass for flights between Stockholm and Helsinki.

Short-term Incentives

The Board of Directors decides on one-year short-term incentive programs separately each year and on cash payouts from the programs in the following year. The Group CEO participates in a one-year short-term incentive program, where the payout is triggered by the earnings per share (EPS) of Sampo Group and the outcome is determined on the basis of the Sampo Group result and the individual performance of the Group CEO. The maximum amount that can be paid to the Group CEO from the program corresponds to nine months' fixed salary. Part of the payout shall be deferred for at least three years as required in the regulatory framework applicable to Sampo. 

Group CEO Torbjörn Magnusson's STI Targets, 2021

  Group targets Individual targets
Description of the performance criteria Value creating development of Sampo Group, evaluated against the plan for the year, and the overall performance of Sampo Group. Including i.a., value creation of associated companies, development of subsidiaries (e.g. Hastings), and development of new business or investment opportunities for Sampo.
Relative weighting 50% 50%
Actual performance in total
90% 100%
Maximum STI

SEK 7,275,750
75% of the annual fixed base salary for 2021*

STI total outcome

SEK 6,911,963
95% of the maximum STI and 71% of annual fixed base salary for 2021*

Deferred amount of the total outcome (may be paid out earliest in 2025)

SEK 2,764,785
40% of the total outcome has been deferred in cash

Payout in 2022 SEK 4,147,178

* The annual fixed base salary of the Group CEO amounted to SEK 9,701,000 in 2021.

Group CEO Torbjörn Magnusson's STI Targets, 2022

  Sampo Group Subsidiaries and associated companies ESG
Description of the performance criteria and relative weighting

Sampo Group combined ratio

If P&C combined ratio

Increased ESG ratings for Sampo

Insurance dividend per share

If P&C gross written premium growth


Other synergy/value-creating development projects and activities

Hastings operating ratio

  Value-creating Nordea strategy
Actual performance in total
Will be evaluated in spring 2023
Maximum STI 75% of the annual fixed base salary for 2022*
STI total outcome

The outcome will be reported after the performance evaluation.  

Deferred amount of the total outcome (may be paid out earliest in 2026) 40% of the earned incentive will be deferred in cash for 3 years as required in the regulatory framework applicable to Sampo.
Payout in 2023 Any incentives earned from the 2022 STI program will be paid out in spring 2023. Deferral rule applies.

*The annual fixed base salary of the Group CEO amounts to SEK 10,283,060 in 2022.

Long-term Incentives

The Board of Directors decides on multiannual long-term incentive schemes and on payouts from the schemes. The Group CEO participates in the long-term incentive schemes 2017:1 and 2020:1 for Sampo Group's key employees, where the outcome is determined on the basis of Sampo's share price development over a period of three to five years starting from the issue of the schemes. The payout is divided into three annual instalments of 30 per cent, 35 per cent, and 35 per cent respectively. The Group CEO has been allocated 350,000 incentive units in the 2017:1 scheme and 350,000 units in the 2020:1 scheme.

The value of one incentive unit is calculated as the difference between the trade-weighted average price of the Sampo A share at the time of payment and the dividend-adjusted starting price. In addition to the share price development, the calculation of the value of one incentive unit takes into account the performance of the insurance margin of If P&C and/or the return on capital at risk as further specified in the terms of the respective incentive scheme. The schemes contain a cap for maximum payout. In the 2017:1 scheme, the capped value of one incentive unit is set at EUR 19 above the starting price and in the 2020:1 scheme, the cap is set at EUR 24 above the starting price.

At payout from the 2017:1 and the 2020:1 schemes, the Group CEO is obliged to purchase Sampo A shares with 50 per cent of each instalment after deducting income tax and other comparable charges. The shares are subject to disposal restrictions for three years, after which the Board of Directors shall decide on the possible release.There are no other formal requirements on share ownership for the Group CEO. Updated information on management shareholdings is available here.

The terms of the long-term incentive schemes

Pension Benefits

In addition to Swedish statutory pension, where the pensionable income is limited to 7.5 income base amounts, the Group CEO is entitled to a supplementary defined contribution pension. The premium corresponds to 38 per cent of the fixed annual salary and 25 per cent of the annual paid short-term incentive. The retirement age is 65.

Termination of Service Relationship

The notice period for terminating the service contract of the Group CEO is 12 months for the company, and Magnusson is entitled to salary during the notice period. In addition, Magnusson is entitled to a severance compensation corresponding to a maximum of 24 months’ fixed salary should i) Sampo plc terminate his service contract or ii) the Group CEO terminate the contract based on either material breach of the contract from the Company’s part, or based on material changes in the Group CEO’s responsibilities due to significant changes in Sampo Group structure or ownership. The maximum amount of severance pay is based on the terms applied in his previous position as the CEO of If P&C Insurance Holding Ltd.

Updated 20 Apr 2022