Employees, salaries, and social security expenses
Acquired operations in 2007 added 2,292 employees, of which in Uzbekistan 801, in Tajikistan 582, in Denmark 317 and in Sweden 237. In the existing operations, streamlining efforts in Sweden and Finland did not offset recruitments mainly in Eurasia to handle the strong customer intake, resulting in a net increase of the number of employees by 472. Hence, the total change during 2007 was an increase by 2 764 employees to 31,292 at year-end (28,528 at year-end 2006).
The average number of full-time employees by country was as follows.
January-December, 2007January-December, 2006


CountryTotal (number)of whom men (%)Total (number)of whom men (%)


Sweden10,00254.210,42751.4


Finland5,69759.05,93659.2


Norway94569.788869.6


Denmark1,55966.61,31068.9


Lithuania3,67252.13,32851.4


Latvia1,01057.179352.7


Estonia2,32256.82,19657.6


Spain7265.33063.3


Kazakhstan1,09354.880347.1


Azerbaijan61346.352541.0


Uzbekistan35864.8--


Tajikistan25549.4--


Georgia22749.320948.3


Moldova29345.125848.4


Russia6063.36663.6


United Kingdom5174.55369.8


Other countries14772.814770.1


Total28,37656.426,96954.9


In total, operations in 2007 and 2006 were conducted in 28 and 26 countries, respectively.
The share of female and male Senior executives was as follows. Senior executives include ordinary members of boards of directors, presidents and other members of executive management teams at the corporate level, business area level and company level.
December 31, 2007December 31, 2006


PercentBoards of directorsOther Senior executivesBoards of directorsOther Senior executives


Women22.923.423.319.5


Men77.176.676.780.5


Total100.0100.0100.0100.0


Total salaries and other remuneration, along with social security expenses and other personnel expenses, were as follows.


January-December


SEK in millions

20072006


Salaries and other remuneration

9,6328,918


Social security expenses






Employer's social security contributions

1,9711,903


Pension expenses

1,2211,408


Total social security expenses

3,1923,311


Capitalized work by employees

-208-161


Other personnel expenses

861653


Total personnel expenses recognized by nature

13,47712,721


Salaries and other remuneration were divided between Senior executives and other employees as follows. Variable salary was expensed in the respective year, but settled in cash in the following year.
January-December, 2007January-December, 2006


SEK in millionsSenior executives (of which variable salary)Other employeesSenior executives (of which variable salary)Other employees


Salaries and other remuneration196 (30)9,436119 (14)8,799


Pension expenses for all Senior executives totaled SEK 36 million in 2007 and SEK 20 million in 2006.
Remuneration to corporate officers
Principles
As resolved by the 2007 Annual General Meeting of shareholders in TeliaSonera AB, remuneration is paid to the chairman of the Board and directors in the amount of SEK 900,000 (2006 AGM: SEK 800,000) per year to the chairman and SEK 400,000 per year to each of the other directors, elected by the Annual General Meeting. In addition, remuneration is paid to the chairman of the Board's Audit Committee in the amount of SEK 150,000 per year and SEK 100,000 per year to each of the other members of the Audit Committee. Additional remuneration is also paid to the chairman of the Board's Remuneration Committee in the amount of SEK 40,000 per year and SEK 20,000 per year to each of the other members of the Remuneration Committee. No separate remuneration is paid to directors for other committee work. Directors appointed as employee representatives are not remunerated. There are no pension benefit arrangements for external directors.
Remuneration to the Chief Executive Officer (CEO), the Executive Vice President (EVP) and other members of the Leadership Team consists of base salary, variable salary, certain taxable benefits and pension benefits. "Other members of the Leadership Team" refers to the 7 individuals who are directly reporting to the CEO and which, along with the CEO and the EVP, constituted the TeliaSonera Leadership Team on December 31, 2007.
Variable salary to the CEO and to the EVP was capped at an amount equal to 50 percent and 35 percent of the base salary, respectively. For other members of the Leadership Team, the variable salary was capped at 35 percent of the base salary. Variable salary is based on the financial performance of the group, financial performance in each officer's area of responsibility and individual performance objectives.
In addition to general employment benefits, members of the Leadership Team are offered the following benefits: health insurance, telephone subscription and company car. All benefits are treated as taxable income.
Pension benefits and other benefits to the CEO, the EVP and other members of the Leadership Team as described above form part of each individual's total remuneration package.
Remuneration and other benefits during the year, pension commitments
SEKBoard remuneration/ Base salaryVariable salaryOther remune-rationOther benefitsPension expenseTotal remune-ration and benefits Total pension commitment
Board of Directors






Tom von Weymarn, chairman940,012----940,012-
Maija-Liisa Friman383,174----383,174-
Conny Karlsson474,848----474,848-
Lars G Nordström401,511----401,511-
Timo Peltola420,012----420,012-
Jon Risfelt451,791--244-452,035-
Caroline Sundewall550,008----550,008-
Leadership Team






Lars Nyberg, CEO2,616,0011,308,000-30,0772,770,7406,724,818-
Kim Ignatius, EVP5,519,4541,066,500-186,2642,250,0619,022,2799,123,495
Other members of the Leadership Team (7 individuals)18,237,0193,476,356540,3752,281,45110,156,21934,691,42051,053,872
Former Board members






Carl Bennet, vice chairman26,648----26,648-
Eva Liljeblom23,376----23,376-
Lennart Låftman19,636----19,636-
Lars-Erik Nilsson23,376----23,376-
Sven-Christer Nilsson23,376----23,376-
Former CEOs, EVPs






Anders Igel4,134,1441,364,26822,395,39989,0558,017,84536,000,71141,502,827
Marianne Nivert------34,190,895
Jan-Åke Kark------35,193,471
Stig-Arne Larsson------24,232,613
Lars Berg------20,338,148
Tony Hagström------9,178,079
Total34,244,3867,215,12422,935,7742,587,09123,194,86590,177,240224,813,400
Comments on the table:
- Board remuneration includes remuneration for Audit Committee and Remuneration Committee work. Remuneration is paid monthly. Base salary for members of the Leadership Team includes additional remuneration paid when temporary acting in a superior function. On a full-year basis, the base salary for the CEO in 2007 was SEK 8,000,000.
- Variable salary was expensed in 2007, but will be settled in cash in 2008. Actual variable salary for 2007 corresponds to 50 percent of the base salary for the CEO, to 27 percent for the EVP and for other members of the Leadership Team to 18-27 percent of the base salary. Variable salary with respect to performance in 2006 was paid in 2007 to the former CEO in an amount of SEK 2,385,100, to the EVP in an amount of SEK 1,102,008 and to other members of the current Leadership Team in an amount of SEK 4,265,210.
- Other remuneration includes cash settlement for unused vacation days and, for the former CEO, all remuneration and benefits during term of notice and a provision for severance pay during a period of 24 months
- Other benefits refer chiefly to company car benefit but also to a number of other taxable items. Further, one other member of the Leadership Team on international assignment is entitled to housing allowance and school fee.
- Pension expense refers to the expense that affected earnings for the year. See further disclosures concerning the terms and conditions of pension benefits below.
Stock options
As of December 31, 2007, TeliaSonera had no outstanding stock option program.
Pension benefits
The CEO has a defined contribution pension arrangement. The pension contribution corresponds to 4.5 percent of the base salary up to 7.5 income base amounts and 30 percent above. In addition, a yearly fixed contribution of SEK 6,000,000 is paid to the pension plan. The age of retirement for the CEO is 65. However, the CEO has the right to early retirement from age 60. The Board of Directors can also request the CEO to retire from age 60. In such a case, no pension contributions will be paid after the early retirement.
The age of retirement for the EVP is 60. Pension benefits between age 60 and 65 shall equal 70 percent of pensionable salary. Pension benefits after age 65 shall be paid in accordance with the ITP plan with supplementation of benefits, amounting to 32.5 percent of the pensionable salary, for that part of salary exceeding 20 income base amounts. Pensionable salary equals the base salary. All pension benefits are unassailable, i.e. are not subject to conditions concerning future employment.
The age of retirement for other members of the Leadership Team varies between 60, 62 and 65. For those employed in Sweden having a retirement age below age 65, pension benefits up to age 65 equal 70 percent of the pensionable salary. Pension benefits after age 65 shall be paid in accordance with the ITP plan with supplementation of benefits, amounting to 32.5 percent of the pensionable salary, for that part of salary exceeding 20 income base amounts except in one case where pension benefits amounts to 32.5 percent for that part of the salary exceeding 30 income base amounts. Pensionable salary includes base salary and variable salary for those employed prior to July 1, 2002. For those employed after that date the pensionable salary equals the base salary. All pension benefits are unassailable, i.e. are not subject to conditions concerning future employment.
The age of retirement for one other member of the Leadership Team employed in Finland is 60. Pension benefits from age 60 shall be the same as they would have been according to the statutory TyEL pension plan with full accrual. The pensionable salary includes variable salary. One other member of the Leadership Team employed in Turkey has a Finnish pension arrangement and is entitled to pension benefits according to the statutory TyEL pension plan.
Severance pay
The contract between the company and the CEO requires both parties to provide 6 months' notice of resignation or termination of employment. Upon termination by the company, before the age of 60, the CEO shall be entitled to severance pay equal to his monthly base salary for a period of 24 months. Other income shall be deducted from the severance amount. If the CEO resigns his position, he shall not be entitled to severance pay. However, in the event of a change-of-control in TeliaSonera, the CEO is entitled to severance pay if he resigns within one month from the change of ownership. If the CEO resigns for this reason before September 3, 2009, he is also entitled to a one year contribution of SEK 6,000,000 to the pension plan.
The contract between the company and the EVP as well as other members of the Leadership Team requires a period of notice of 6 months from the employee and 12 months from the company with respect to resignation or termination of employment. Upon termination by the company, the employee shall be entitled to severance pay equal to the monthly base salary for a period of 12 months. Other income shall be deducted against the salary during the notice period and against the severance amount. If the employee resigns his or her position, he or she shall not be entitled to severance pay.
Planning and decision process
Remuneration to the CEO is decided by the Board of Directors based on the recommendation of the Remuneration Committee. Remuneration to other members of the Leadership Team is approved by the Remuneration Committee, based on the CEO's recommendation.