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12. Remuneration of the executive management

The Board’s Compensation Committee presents a recommendation concerning the terms and conditions for the President and CEO to the Board of Directors and monitors the general terms and conditions for other senior executives in the Group. 

The Board assesses the President and CEO and his terms and conditions once a year. A description of the remuneration of the executive management and the Group’s compensation and benefits policy, including the scope and design of bonus and share-price-related programmes, is given in the Board of Directors’ statement of guidelines for the remuneration of executive management; see Note 5 to Orkla ASA’s financial statements. A ceiling has been set for performance-related remuneration. The Board of Directors’ statement of guidelines is made available to shareholders in a separate document pertaining to this item of business, together with the notice of the Annual General Meeting.

Remuneration of the Group Executive Board

The Board of Directors decides the terms and conditions of the President and CEO and makes decisions on fundamental issues relating to the Group’s compensation and benefits policy and compensation arrangements for other employees. The Board of Directors has a special Compensation Committee that prepares matters relating to compensation for decision by the Board. The Committee consists of three Board members, one of whom is elected by the employees, and was chaired by the Deputy Chair of the Board in 2016. The administration prepares matters for the Compensation Committee and the Board.

The Group Executive Board participated in the Group’s annual bonus system and long-term incentive programme in 2016.

Salaries and remuneration to the Group Executive Board and accrued bonuses are presented below. For accruals and the balance in the bonus bank as at 31 December 2016, based on the Orkla share price as at 31 December 2016 (NOK 78.20), paid salary and holiday pay and benefits in kind, please see Note 5 to Orkla ASA’s financial statements below.

Amounts in 1,000 NOK Fixed salary
31 Dec. 2016
Paid bonus
(accrued in 2015)
Total paid
salary and
allowance
Peter A. Ruzicka  5 923 3 629 10 070
Jens Bjørn Staff 2 870 986 4 229
Terje Andersen 2 899 1 474 6 262
Karl Otto Tveter 2 913 1 111 5 425
Atle Vidar Nagel-Johansen 3 570   1 818 7 393
Ann-Beth Freuchen 2 800 1 440 4 993
Pål Eikeland 2 800 1 390 5 990
Stig Ebert Nilssen 3 140  666 4 994
Johan Clarin (salary in SEK) 2 915 1 175 4 823