The Fund manages a global portfolio of securities that is diversified across several asset classes. Handling this task demands the right expertise, and the Fund competes for these competencies with other players in the financial market within business sector. This makes remuneration in the Fund essential.

The Remuneration Committee within the Fund’s Board prepares matters concerning remuneration before the Board’s decision. It is, however, the responsibility of the entire Board to establish the terms of remuneration to the Managing Director and oversee the Managing Director in ensuring that the terms of remuneration of other senior executives and employees are consistent with this policy. The Fund otherwise applies the grandfather principle, which means that the terms of remuneration for a subordinate must be approved by the manager’s manager. Every year, the Managing Director shall report on the Fund’s compliance with these guidelines. The Board is also responsible for ensuring that written documentation showing the Fund's cost is available prior to decisions regarding remuneration to senior executives. The Board regularly carries out comparisons with relevant parts of the market as a basis for monitoring the Fund’s remuneration policies.

The Fund’s salary guidelines state that salary shall be determined with respect to the responsibilities and level of difficulty in the respective position and the employee’s ability to meet these requirements. The total amount of remuneration shall be reasonable, fair and characterized by moderation. Första AP-fonden shall not have a level of remuneration that is higher than the norm for comparable positions. In order to attract the right expertise and the right employees, the Fund shall be able to offer market-based remuneration and terms of employment.

The Fund’s Board has adopted a remuneration policy for senior executives. The total amount of remuneration shall be reasonable, fair and characterized by moderation. Furthermore, the level of remuneration shall be market-based and competitive with respect to the labour market where the executive works, but without being higher than the norm for comparable positions. The total remuneration package consists of fixed/basic salary, benefits and pension. The total amount of remuneration shall be based on market conditions and shall reflect the professional experience, expertise, responsibilities and performance of the individual in question. In the annual reports of the Fund is more information about compensation paid.

The Fund previously had a variable remuneration program for the employees. The program was consistent with both the Swedish Government’s guidelines regarding terms of employment for senior executives in the AP funds and the Fund’s own remuneration policies. The program was evaluated and the Fund’s Board of Directors found that it did not have the desired attributes. The Fund consequently decided to terminate the program with effect from 1 January 2010. As a result, no variable salary is paid to senior executives or other employees.

In light of the above, the Board of Första AP-fonden can state that the Fund’s remuneration to all emplyees is in compliance with the Swedish Government’s Guidelines for terms of employment of senior executives in the AP funds (in swedish). In addition, the Fund has gone further than required by the guidelines in that it has eliminated the possibility for variable salary for all employees. Första AP-fonden also follows all points in the Swedish Code of Corporate Governance (9.1 – 9.9) regarding remuneration to senior executives.