Item 14: Remuneration Policy
Folketrygdfondet’s decision to vote against the Remuneration policy is based on a cumulative assessment. Folketrygdfondet’s expectations related to board and executive remuneration is that the total amount of remuneration should not entail an unreasonable transfer of value from shareholders to executives. In this case, we note that the company has failed to implement a remuneration strategy that adequately aligns executive pay with performance, in particular there is no annual bonus deferral and poor disclosure of performance metrics. For these reasons, Folketrygdfondet voted against item 14.
Item 15: Remuneration Report
Folketrygdfondet’s decision to vote against the Remuneration policy is based on a cumulative assessment. Folketrygdfondet’s expectations related to board and executive remuneration is that the total amount of remuneration should not entail an unreasonable transfer of value from shareholders to executives. In this case, we note that the increase in CEO compensation is significant. Folketrygdfondet is not convinced that an increase of this scale is justified at this time. Furthermore the remuneration strategy do not adequately aligned with performance, in particular poor disclosure of performance criteria. For these reasons, Folketrygdfondet voted against item 15.