The Board determines the principles applicable to the Group’s policy for senior executive compensation. The Board is directly responsible for the determination of the CEO’s salary and other benefits. The CEO is, in consultation with the chairman of the Board, responsible for the determination of the salary and other benefits for the Group’s other senior executives. The Group’s senior executives include the management team of each business area as well as the senior members of the corporate staff.
The following guidelines form the basis of the determination of compensation to the Group’s senior executives:
- The total compensation offered to senior executives shall be competitive, both nationally and internationally.
- The compensation shall contain elements providing necessary financial security following termination of the employment, both before the age of retirement and in connection with this.
- The compensation shall be motivating, both for the individual and for the senior executives as a group.
- Variable elements in the total compensation shall be linked to the values generated by the Group for the Company’s shareholders.
- The system of compensation shall be understandable and meet general acceptance internally in the Group, among the Company’s shareholders and with the public.
- The system of compensation shall be flexible and contain mechanisms which make it possible to carry out individual adjustments based on the results achieved and contributions made towards the development of the Group.
Remuneration of the Company’s CEO and the executive management team is disclosed in the Annual Report note 11. The Board prepares a statement in compliance with the Public Limited Liability Companies Act regarding the remuneration of the executive management team for the consideration by the AGM.
The remuneration concept for the corporate executive staff consists of the following main elements:
- Fixed salaries
- Benefits in kind
- Termination payment
For additional information on the different elements, reference is made to the Annual Report note 11.
In addition, the Group has a Share Price Based Incentive Scheme ("Scheme") for key employees. The details of the Scheme are described in note 11 of the Annual Report and in the board of directors’ statement on the principles applicable to the determination of salaries and other compensation for senior executives, which are available on the Company's web site (www.marineharvest.com)