Item 7. Advisory vote on the compensation report
The report is based on a program for executive compensation that does not include a maximum limit on option or other share-based comensation. The lack of a maximum limit is not in accordance with Folketrygdfondet's expectations for companies' executive remuneration programs. Folketrygdfondet therefore voted against the program last year and votes this year against the report for the same reasons.
Item 12. Board authorization – Incentive programs
We refer to our voting rationale in item 7. Folketrygdfondet is positive to share ownership among executives and board members in order to secure aligned incentives with shareholders, as well as good corporate governance and value creation over the long term. We expect boards to develop plans that are clear and simple, include a maximum limit, and a scope that is not unreasonable. This program lacks a maximum limit and can lead to the issuance of an additional 10 percent new shares. Folketrygdfondet's view is that the program's scope is too large and can involve an excessive transfer of value from shareholders to company management. Folketrygdfondet therefore will vote against the proposal to give the board the authorization to increase share capital in connection with the incentive program.