Item 5. Guidelines for the pay and other remuneration of executive personnel
Folketrygdfondet takes a positive view of remuneration systems that are targeted and performance-based. Incentive schemes should be linked to personal goals, company targets and goals aimed at ensuring good value creation for the shareholders over time. We expect boards to devise schemes that are simple and clear, have a maximum limit and a scope that is not unreasonable. In Folketrygdfondet’s view, since the description of MPC Container Ships’ incentive scheme lacks both such a maximum limit and key details about the programme, this proposal could therefore involve an excessive transfer of value from shareholders to the company’s employees.