Esselte introduces new bonus system for executives
Esselte's Board of Directors has decided to introduce a new bonus system for Group executives as a consequence of Esselte's new strategy, in which business areas operate independently and are valued on the basis of their own merits. The new system replaces a previous model. Bonuses for business area executives will be based on each unit's financial performance instead of the Group's total financial results, the system used earlier. The new system applies to approximately 20 people in management groups within the two business areas Esselte Office Products and Meto. Esselte's third business area, Nielsen & Bainbridge, is in the process of being divested and is consequently not included in the new bonus model. In the new model, half of the bonus is based on a business area's growth in value in accordance with the Economic Value Added (EVA) model, while the other half is based on the fulfillment of operative and personal goals. For Group Management members, the following will apply: the Chief Executive Officer's bonus will be based on growth in share value. Bonuses for other Group Management members will be based on personal financial goals. The Esselte Group consists of three independent business areas - Esselte Office Products, Meto and Nielsen & Bainbridge - which are all global market leaders in their respective product categories: office products, labeling systems and picture framing products. The Parent Company, Esselte AB, focuses on creating added value by being an active owner and implementing structural measures to streamline operations. For further information please contact Bengt Wikander, Senior Vice President, Corporate Communications, at Esselte AB. Phone +46 8 545 21 900 (switchboard), +46 8 545 21 904 (direct line) or +46 708 92 24 31 (mobile phone).