Survey Non-Executive Remuneration
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Transcript of Survey Non-Executive Remuneration
Survey Non-Executive Remuneration
All rights belonging toNorwegian Institute of Directors
Oslo, Feb. 2011/TES
Survey Data
• Data sources: General Meetings Minutes 2010, Annual Reports 2009,
• Participants: Companies listed on Oslo Stock Exchange + state owned companies
• Total number of respondents: 191• Conducted October – Desember 2010
• Currency conversion pr. 22/11• Market Cap Oslo Stock Exchange pr. 12/11• Industry Classification according to Oslo Stock Exchange• Swedish data: Dagens Industri, January 20th, p. 6• Pr. Feb 8th 1€ = 7,8 NOK/ 1NOK = 0.127489 €
Highlights
• Practice and methods for determination of non-executive remuneration are highly variable– Upcoming period vs previous period– Fixed and/or pr meeting (number of meetings usually not known)– Committee participation some times included, sometimes not– Travel Compensation some times included, sometimes not
• Wide span of compensation level– Chairperson NOK 30.000 - NOK 960.000– Board Member NOK 15.000 - NOK 451.000– State owned Companies:
• Chairperson NOK 22.000 - NOK 400.000 • Board Member NOK 8.700 - NOK 235.000
Highlights cont.
• Key numbers (Chairperson/Board Member)– Average NOK 330.000/180.000– Upper quartile NOK 420.000/225.000– Median NOK 300.000/170.000– Lower quartile NOK 200.000/110.000
• Average 10 highest payed: – Chairperson
• Sweden NOK 1 760 000• Norway NOK 695 000 (40% of 1 760 000)
– Board Member• Sweden NOK 470 000- Norway NOK 366 000 (78% of 470 000)
Average Compensation 30 largest companies
• Chairperson- Sweden NOK 1 260 000 (Except Astra Zeneca and ABB)- Norway NOK 470 000 (37% of NOK 1 260 000)
• Board Member- Sweden NOK 395 000 (Except Astra Zeneca og ABB)- Norway NOK 240 000 (60 % of NOK 395 000)
Average pr industry Chairperson
Ener
gi
Fors
ynin
g
Mater
iale
r
Konsu
mva
rer
Forb
ruks
vare
r
Tele
kom
Oslo b
ørs IT
Finan
s
Indu
stri
Helse
vern
Stat
seid
e0
100,000
200,000
300,000
400,000
500,000
Average pr Industry – Board Member
Ener
gi
Mater
iale
r
Konsu
mva
rer
Oslo b
ørs
Fors
ynin
g
Indu
stri IT
Finan
s
Forb
ruks
vare
r
Tele
kom
Helse
vern
Stat
seid
e0
50,000
100,000
150,000
200,000
250,000
Average Compensation
Styreleder - 30 største Styreleder - Alle Styremedlem - 30 største Styremedlem - Alle0
100000
200000
300000
400000
500000
Compensation/Market Cap
Stat
oil
Tele
nor
DnB N
or
Yara
Inte
rnat
iona
l
Norsk
Hyd
roOrk
la
Aker S
olut
ions
Acerg
y
Marin
e Har
vest
Renew
able
Ene
rgy
Corp.
Petro
leum
Geo
-Ser
vice
s
Schi
bste
d
Kongs
berg
Gru
ppen
Fred
. Olse
n En
ergy
Auste
voll
Seaf
ood
Lerø
y Se
afoo
d Gro
up
BW O
ffshor
e Lim
ited
Olav
Thon
Eie
ndom
ssel
skap
Pros
afe
DNO Inte
rnat
iona
l
Cerm
aq SAS
Veide
kke
Bonhe
ur
Fars
tad
Ship
ping
SalM
ar
Ekor
nes
Hafslu
nd A
SA
Norweg
ian
Prop
erty
Tom
ra S
yste
ms
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Statoil highest Market Cap
Spread Chairperson
700 000 +
600 000 - 699 999
500 000 - 599 999
400 000 - 499 999
300 000 - 399 999
200 000 - 299 999
100 000 - 199 999
0 - 99 999
Comments – Chair Person
• Utvalg: 135 av 180 selskaper notert på Oslo Børs• Dette tilsvarer ca 75 %.• 50 % av styreledere fra NOK 200 000 – 400 000• 17,5 % av styrelederne ligger over NOK 500 000• 20 % av styrelederne ligger under NOK 200 000
• Øvre Kvartil: NOK 420 000• Median: NOK 300 000• Nedre kvartil: NOK 200 000
Fordeling - Styremedlem
400 000 +300 000 - 399 999200 000 - 299 999100 000 - 199 9990 - 99 999
10 best payed Chairpersons
Acergy Farstad Shipping
Marine Harvest
Eltek Prosafe Schibsted Prosafe Production
Public
Norwegian Energy
Company
Statoil Hafslund0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Top 10 - Chairperson (2009)
10 best payed Board member
Pros
afe
Prod
uctio
n Pu
blic
Acerg
y
Pros
afe
Norweg
ian
Ener
gy C
ompa
ny
Tom
ra S
yste
ms
Elte
k
Orkla
Schi
bste
d
Inte
rOil
Expl
orat
ion
and
Prod
.
Stat
oil
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Top 10 – Board Member (2009)
10 poorly payed Chairpersons
Olav
Thon
Eie
ndom
ssel
skap
Biote
c Ph
arm
acon
Green
Ree
fers
Comro
d Com
mun
icatio
n
Solv
ang
Dolph
in In
terc
onne
ct S
olut
ions
Inm
eta
Norweg
ian
Car C
arrie
rs
NorDia
g
Namso
s Tra
fikks
elsk
ap
Aktiv
Kap
ital
0
20,000
40,000
60,000
80,000
100,000
120,000
10 poorly payed Board members
Skie
ns A
ktie
møl
le
Medi-S
tim
Comro
d Com
mun
icatio
n
Solv
ang
Norweg
ian
Car C
arrie
rs
DiaGen
ic
Repan
t
Biote
c Ph
arm
acon
Bakka
frost
NorDia
g
Namso
s Tra
fikks
elsk
ap0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Nomination Committee
6%
5%
6%
9%
17%
22%
22%
14%
Head of nomination Committee – fixed compensation
70 000 +
60 000 - 69 999
50 000 - 59 999
40 000 - 49 999
30 000- 39 999
20 000 - 29 999
10 000 - 19 999
0 - 9 999
Nomination Committee - Member
1%
17%
20%
46%
16%
Nomination Committee Member – fixed compensation
40 000 +30 000- 39 99920 000 - 29 99910 000 - 19 9990 - 9 999
Nomination Committee Fixed Compensation
• 78 % payes fixed compensation (9% additional compensation pr meeting)
• Key numbers Head/Member of Nomitaion Committee
– Average NOK 29 000/18 000– Upper quartile NOK 40 000/25000– Median NOK 25 000/15 000– Lower quartile NOK 15 000/10 000
Nomination Committee Compensation pr meeting
• Key numbers Head/Member of Nomitaion Committee
– Average pr meeting NOK 7 000/5 500– Upper quartile NOK 10 000/7 500– Median NOK 6 000/5 000– Lower quartile NOK 4 000/3 000