Annual Report 2010

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NOTES TO THE FINANCIAL STATEMENTS OF THE GROUP Salaries, other remuneration and social security costs per country Parent Company Sweden Total Parent Company Subsidiary companies in Sweden Subsidiary foreign companies France Norway Netherlands Indonesia Russia Tunisia Singapore Malaysia Ethiopia Kenya United Arab Emirates Switzerland Venezuela Italy United Kingdom Total subsidiary companies Total Group of which deﬁned contribution plan cost of which deﬁned beneﬁt plan cost 2010 Salaries Social and other security remuneration costs 486 486 39 39 2009 Salaries and other remuneration 646 646 Social security costs 119 119 Salaries, other remuneration per country split between the Board of Directors/ MD and other employees Parent Company Sweden Total Parent Company 2010 Board of Directors and MD 486 486 Other employees – – 2009 Board of Directors Other and MD employees 646 646 – – – – – – Subsidiary companies in Sweden Subsidiary foreign companies France Norway Netherlands Indonesia Russia Tunisia Singapore Malaysia Ethiopia Kenya United Arab Emirates Switzerland Venezuela Italy United Kingdom Total subsidiary companies Total Group – – – – 3,842 21,061 1,062 2,186 4,622 1,121 1,434 5,852 – – 234 24,699 248 679 1,218 68,258 68,744 1,801 5,071 98 38 276 63 2 107 – – – 2,088 40 274 223 10,081 10,120 3,557 132 4,037 12,878 908 1,201 5,893 847 1,519 2,934 206 105 204 19,659 132 – 5,628 56,151 56,797 2,157 3,368 99 31 475 64 3 2 4 5 – 1,647 23 – 995 8,873 8,992 2,851 – 2,121 415 502 778 311 803 816 – – – 9,433 – – 437 15,668 16,155 3,842 18,940 647 1,683 3,844 810 632 5,036 – – 234 15,266 248 679 781 52,590 52,590 – 1,085 337 408 2,075 367 492 538 168 46 – 9,092 – – 2,131 16,739 17,385 4,037 11,793 571 793 3,818 479 1,027 2,395 38 59 204 10,567 132 – 3,497 39,412 39,412 127 Amounts for Switzerland includes cost for personnel of Etrion SA up until deconsolidation. NOTE 45 – REMUNERATION TO THE BOARD OF DIRECTORS AND MANAGEMENT Salaries and other remuneration to non-executive directors (TSEK) 1 Ian H. Lundin Magnus Unger Lukas H. Lundin William A. Rand Asbjørn Larsen Dambisa F. Moyo Total 1 2 Board Fees 800 400 400 400 400 400 2,800 Committee Fees – 200 100 200 100 100 700 Total remuneration for Board and Committee work 800 600 500 600 500 500 3,500 Other 2 1,685 100 – – – – 1,785 Total 2010 2,485 700 500 600 500 500 5,285 Total 2009 2,270 757 558 600 450 292 4,927 The amounts are presented in SEK as the Board remuneration is due in SEK as per the decisions of the 2010 AGM. The total remuneration for 2010 in USD is TUSD 735. Other remuneration paid during 2010 relates to fees paid for special assignments undertaken on behalf of the Group. The payment of such fees was in accordance with fees approved by the 2010 AGM. There are no severance pay agreements in place for any non-executive directors and such directors are not eligible to participate in any of the Company’s incentive programmes. Remuneration to Management During 2010, new rules regarding management remuneration were introduced in Sweden following the introduction of a revised Code of Corporate Governance (Code of Governance). In light of these changes, the Company’s Compensation Committee considered the implications of the new rules on the content and scope of the Company’s Policy on Remuneration. Based on its review, the Compensation Committee concluded that the Company’s Policy on Remuneration remains in compliance with the rules of the Code of Governance and that no changes to the content of the Policy, as a result of the new rules, are required. In connection with this review, the Compensation Committee also considered the Company’s internal decision-making processes. Since 2009, when Lundin Petroleum’s Investment Committee was established, all major management decisions regarding the worldwide operations and the ﬁnancial position of the Company are submitted for consideration and approval to the Investment Committee, which consists of the Company’s President and Chief Executive Oﬃcer, Chief Operating Oﬃcer, Chief Financial Oﬃcer and Senior Vice President Operations. Considering this development, the Compensation Committee determined that the Executive Management of the Company, to which the Company’s Policy on Remuneration shall be applicable, shall be the members of the Investment Committee. Please see page 64 for further information on the Board of Directors’ proposal regarding the Policy on Remuneration for 2011. 89

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