The Board’s Remuneration Committee routinely evaluates the terms of remuneration to senior executives in light of current market conditions. The Committee prepares matters in this area for decision by the Board. The members of the Remuneration Committee are appointed annually by the Board. The Remuneration Committee consists of three Board members, including the Chairman of the Board, who is also Chairman of the Remuneration Committee. The Committee’s rules of procedure are included in the Board of Directors’ rules of procedure and are ratified annually. The tasks of the Remuneration Committee are:
- preparing recruitments to Executive Management and succession issues regarding Executive Management, as well as preparing questions regarding talent supply and broadening of management within the Group;
- discussing management by objectives concerning gender equality and diversity issues,
- preparing and proposing guidelines for remuneration principles, remuneration and terms of employment for the CEO and other senior executives. The guidelines for remuneration are to be submitted to the Board, which in turn will submit remuneration proposals for resolution at the AGM; The Remuneration Committee will also Monitor and evaluate programs – both ongoing and concluded during the year – for variable remuneration to Executive Management. The results of the Remuneration Committee’s evaluation of remuneration to senior executives are presented on the Company’s website; and
- annually evaluating the efforts of the CEO, which is also done by an external expert, including interviews with both the Board of Directors and those reporting directly to the CEO.
- Guidelines for remuneration policies
- Remuneration to senior executives
- Preparation of incentive programs
- Evaluation of the CEO
- Preparation of recruitments to Executive Management and succession issues
- Preparation of issues concerning management expansion and talent supply
- Management by objectives for equality and diversity
The Remuneration Committee is to meet at least twice a year. In 2019, the Committee held four meetings. Issues addressed at the meetings included the review of remuneration to the CEO and other senior executives; proposals to the Board regarding the revision of the Executive Management’s remuneration package; monitoring and evaluation of incentive programs in effect; and proposals drawn up for parameters for the individually targeted factors in the annual performance-based incentive program as well as HR and succession issues.