9.1.1.3 Other recommendations

With respect to remuneration, the SSA considers it a general rule that board members do not participate in incentive schemes for employees. Holding shares in the company is not considered a problem (Aktiespararna 2001: 17). However, the SSA admits that in developing companies board members with special skills and qualities are required, who can often only be hired by offering them a form of performance-based pay. If normal economic resources are not sufficient to meet their remuneration demands, subscription warrants are a good alternative in some cases. Such remuneration schemes must be constructed by a valuation institute in cooperation with the nomination committee.

Finally, the CGP of the SSA is summarised into twenty-three recommendations, of which five focus on the management of the company. The SSA does not provide any details about how to implement the CGP and the recommendations; neither does it require any reporting about the CGP. However, the SSA mentions in its foreword that it will ‘strive to promote knowledge and acceptance of this policy throughout the Swedish stock market’ (Aktiespararna 2001: 3).