Page 88 - Mantena Annual Report 2021

GUIDELINES FOR DETERMINING SALARIES AND OTHER REMUNERATION TO SENIOR EXECUTIVES AND MEMBERS OF THE BOARD OF MANTENA AS.
Adopted; 17.02.2022
These policies are in line with “Guidelines for salary and other remuneration to senior executives of enterprises and companies with a state ownership interest (Ministry of Trade, Industry
and Fisheries 30.04.2021)” and the expectations expressed in Storting White Paper No 8 (2019-2020) “Direct State ownership of companies - Sustainable value creation”, and have been prepared in accordance with Section 6-16a of the Norwegian Public Limited Companies Act and related regulations. The expectation of moderation in the remuneration paid to senior executives is given great weight.
The guidelines are drawn up by Mantena’s Board of Directors, and approved by the general meeting when there is any material change, and at least every four years.
General
Mantena’s competitiveness, continued growth and profitability depend on motivated employees and capable managers. For this, it is important that individuals’ salary and compensation should be perceived as predictable and fair, but this is not the
only consideration. Salary and other compensation should be a motivating factor to produce the highest possible returns over time, and this should be reflected in the criteria applied to ensure that long-term objectives are prioritised over short-term. Underlying operations should take precedence over short-term gains. Mantena has a uniform pay policy and a salary system that aims to promote results and to be attractive, but not to lead the market. When a senior executive is employed in Mantena, it is on competitive terms, and any supplements paid in subsequent years should in principle use the same percentage applied to all employees of the company. Mantena’s remuneration policy is rooted in the company’s goals, values and strategy.
These guidelines apply to the managing director and directors
who report to the managing director of Mantena AS. This group is referred to as senior executives. All senior executives are employed by Mantena AS; the subsidiaries have no senior executives. The guidelines also apply to the Board. The remuneration of the Board is determined by the general meeting.
Decision-making process
The compensation scheme for senior executives consists of basic salary, pension and benefits in kind. The Managing Director’s compensation package is determined by the Board of Directors. The Board of Directors approves the principles behind the compensation scheme for other senior executives based on the recommendations
of the Managing Director. The assessments are usually made in the first quarter of each year, subject to agreement between the management and the trade unions on the pay settlement.
In 2021, a 2.7% pay rise was agreed with the trade unions. This percentage was then applied to the pay of all senior executives.
For 2022 the same procedure will be followed.
Within the total salary budget for senior executives, the compensation may vary at the individual level, and this has to be justified to the Board by the CEO on the basis of agreed objectives and results achieved.
Guidelines for salaries and benefits in kind
The compensation of the Managing Director and senior executives must reflect the responsibilities and complexity of the job and the need to be attractive in the labour market. The compensation must be transparent and consistent with the principles of good corporate governance.
The main element is the basic salary which should in principle
rise in step with the pay of all employees in the company, i.e. the same percentage increase should be used for senior executives
as for all other employees. If there is a need for a greater or lesser adjustment of salary for some people, where their responsibilities change or for competitive reasons, this must be justified separately and discussed with the Board. The basic salary is adjusted each year. There is also a car allowance which follows the government regulations.
Senior executives in Mantena AS have benefits in kind in the form of mobile phones and a newspaper.
Bonus scheme
In 2021, no one had a bonus scheme in Mantena.
Pensions
A new pension scheme was implemented from 01.01.2019. The new scheme is a defined-contribution scheme in accordance with he Norwegian Act on Defined-Contribution Pensions:
• Contributions, 0 G –7.1 G: 5.5% (without deductible)
• Contributions, 7.1 G –12 G: 15% (without deductible)
• The defined-contribution scheme includes permanent and
temporary employees filling at least 20% of a full-time position in accordance with Section 4-2 of the Act on Defined- Contribution Pensions.
88 Annual Report 2021