Principer för ersättningar

Salaries

Oriflame offers competitive salaries according to position and market in order to attract and retain the best individuals for the positions.

Fixed and variable components

Oriflame allocates 10 percent of any increase in operating profit to profit sharing to be shared among the Company's top management, however for each individual never more than an equivalent of 12 months salary. The allocation is according to position and to performance in the year. The 10 percent includes company cost for social charges.

Moreover, the Company currently offers a share incentive plan which covers the members of the Company's top management and approximately 50 additional senior management members. Each year the individuals covered by the plan are invited to invest in a number of shares at the current market price. In return for this they will, within a period of usually three to five years, receive a number of free shares. For further information, see note 23 in the financial statements.

Pensions

Company's top management are offered pension benefits that are competitive in the country where the individual is resident. Oriflame pays pensions into an independent defined contribution scheme. In addition, Oriflame has defined contribution schemes for some of its employees in compliance with pension requirements in the countries in which it operates.

Non-monetary benefits

Members of the Company's top management are entitled to customary non-monetary benefits such as company cars and company health care. Moreover, expatriate individuals may be offered company housing and other benefits including school fees.

The board of director's report on evaluation of principles of remuneration and variable compensation plans

In advance of the Annual General Meeting 2016, the remuneration committee has evaluated the existing variable compensation plans (bonus and share incentive plans), as well as evaluated the general application of the principles of remuneration to members of the company's top management.

The evaluation has included a review of 2015 salaries and bonuses to the company's top management, as well as a review of the share incentive and retention plan allotment to the top approximately 80 employees of the company. The review has furthermore included an evaluation of the ratio between fixed salary, bonuses, pensions and share incentive allocations, as well as a review of the historical outcome of previous share incentive plans, as well as projected future outcome of the current share incentive plan.

The remuneration committee has presented its evaluation to the board of directors, who has concluded that both the short-term and the long-term programs are deemed to be structured in such a way as to contribute to the attainment of Oriflame's financial goals and to increased value for the company's shareholders. The remuneration structures and levels in the company have furthermore been found to correspond to market practice.

A further description of the current principles of remuneration, the current share incentive and retention plan (including historical pay-out), as well as the remuneration details for the Executive management of the company can be found in the 2015 Compensation Report included in the 2015 Annual Report, available also as a stand-alone document via the link below.

Ersättningsrapport 2015.