Investinor’s bonus scheme

Investinor operates with a bonus scheme adopted by the Board of Directors. The scheme applies to all employees and exists with the aim of promoting the achievement of Investinor’s objectives. The scheme is in compliance with Norwegian state guidelines for executive pay in companies wholly or partly owned by the state (Statens retningslinjer for lederlønn i selskaper med statlig eierandel).

The bonus scheme is structured such that for each accrual year, running from 1 January to 31 December, a so-called bonus reserve fund is calculated which is made up of (i) a financial and (ii) a strategic bonus element. Both elements are assigned a level of goal achievement ranging from 0% to 100% for the accrual year in question. The bonus reserve fund itself will be stipulated as a percentage share of an employee’s fixed salary, with a maximum level of 50% (in the event of 100% goal achievement).

The financial bonus element is calculated based on a three-year rolling earnings factor (and actual returns from direct investments). The strategic bonus element is based on annually defined subsidiary goals that are stipulated by the Board. Subsidiary goals must be measurable, and the means of determining the extent to which an employee has achieved a given goal must be clearly defined. The financial the strategic bonus elements carry weights of 70% and 30% respectively.

The bonus reserve fund will be distributed to individual employees in two parts; a collective share and an individual share. The collective share comprises a percentage of fixed salary that will be identical for all employees. It will comprise a minimum of 50% of the total bonus reserve fund stipulated as a percentage of total fixed salary. The individual share shall be determined based on an employee’s level of goal achievement and performance, combined with an overall assessment. The assessment of an individual’s goal achievement and performance will be based primarily on a thorough evaluation process carried out in accordance with market practice as exercised in comparable enterprises.

The Board of Investinor has appointed a Compensation Committee, which in 2021 was made up of three Board members. The CEO acts as secretary to the Compensation Committee. The committee advises on the guidelines used by the Board to determine compensation for executive personnel. The committee also draws up and makes proposals to the Board regarding compensation for the CEO and, at the same time, serves in an advisory capacity to the CEO regarding compensation to both executive personnel and, as appropriate, other employees who report to the CEO.