Scania Annual Report 2011

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NOTE 27 Related party transactions
Revenue Expenses Receivables Liabilities
2011 2010 2009 2011 2010 2009 2011 2010 2009 2011 2010 2009
Volkswagen Group 369 30 27 378 222 205 235 15 4 170 8 12
Associated companies
and joint ventures
Bits Data i Södertälje AB – – – 17 16 15 – – – 1 2 1
Cummins-Scania HPI L.L.C – – – 168 120 78 – – – 17 27 16
Cummins-Scania XPI
Manufacturing L.L.C 77 58 21 274 302 255 14 18 7 7 23 16
Laxå Special Vehicles AB 15 12 – 134 66 – 4 8 – 41 31 –
ScaMadrid S.A. 70 101 78 25 30 36 8 13 8 1 1 2
ScaValencia S.A. 94 88 120 61 42 67 12 8 8 2 2 3
Others 10 – 13 6 – 8 – – 1 1 – –
Disclosures of relationships with related parties that include a controlling
influence are provided in the list of subsidiaries. See also the
presen tation of Scania’s Board of Directors and Executive Board as
well as Note 28, “Compensation to executive officers”. Disclosures of
dividends from, and capital contributions to, associated companies
and joint ventures are provided in Note 13, “Holdings in associated
companies and joint ventures etc”. Disclosures of pension plans are
provided in Note 17, “Provisions for pensions and similar commitments”
and Note 26, “Wages, salaries and number of employees”.
Purchases and leases of company cars are included in the transactions
with the Volkswagen Group. Comparative years have been adjusted
with these transactions. During 2011 Volkswagen increased its ownership
of MAN, which means that the MAN Group is now a related party
and is included in the Volkswagen Group.
All related party transactions occur on market terms.
NOTE 28 Compensation to executive officers
REMUNERATION TO THE BOARD
According to the decision of the Annual General Meeting (AGM), remuneration
during 2011 to be paid to the external members of the Board
of Directors elected by the AGM totalled SEK 2,500,000 (2,031,250),
with SEK 500,000 (406,250) to each Board member elected by the
AGM who is not an employee of the company or of Volkswagen AG.
For work performed in the Audit Committee, the AGM approved
remuneration of SEK 200,000 to the Chairman of the Audit Committee
and SEK 100,000 each to the other Audit Committee members who
are not employees of Volkswagen AG. For work performed in
the Remuneration Committee, the AGM approved remuneration of
SEK 50,000 each to the Remuneration Committee members who are
not employees of Volkswagen AG. Beyond the customary remuneration
to the Board, no compensation from Scania was paid to the
members of the Board who are not employees of the company.
PRINCIPLES FOR COMPENSATION TO EXECUTIVE OFFICERS
The principles for compensation to Scania executive officers are
adopted by the AGM. The purpose is to offer a market-related compensation
package that will enable the company to recruit and retain
executive officer s. Compensation to executive officers consists of the
following parts:
1. Fixed salary
2. Variable earnings-dependent salary
3. Pension
The fixed salary of executive officers shall be competitive in relation to
position, individual qualifications and performance. The fixed salary
is reviewe d annually. The size of the variable salary is dependent on
Scania’s earnings. The pension comprises a premium-based pension
system that applies in addition to the public pension and the ITP
occupational pension.
financial reports Scania 2011