Guidelines for pay and other remuneration of the executive management

Guidelines adapted at Orkla’s General Meeting in 2018:

 

The purpose of Orkla’s reward policy is to attract personnel with the competence that the Group requires, develop and retain employees with key expertise and promote a long-term perspective and continuous improvement supporting achievement of Orkla’s business goals. The general approach adopted in Orkla’s policy is to pay fixed salaries in line with market median level while offering variable pay linked to results, share price performance, etc. (short and long-term incentives) above market median level. Compensation may consist of the following elements:

a) Fixed elements

Orkla uses internationally recognised job assessment systems to find the “right” level for the job and the fixed salary. Jobs are assessed in relation to their local market (country) and a pay range of the median +/- 20% is applied. The employee’s responsibilities, results and performance determine where he or she is placed on the salary scale.

(b) Variable elements – annual bonus

Senior executives in Orkla participate in the Group’s central annual bonus programme. The programme has a maximum ceiling of 100% of the employee’s fixed salary as at 31 December in the year of accrual. Under this programme, a “good performance” can result in an annual bonus of approximately 30% of an employee’s fixed salary as at 31 December in the accrual year. A “good performance” is defined as the achievement of results in line with externally communicated financial targets for 2016–2018. Profit growth is the primary goal for the central annual bonus programme.

In addition, the Group has share-based incentive programmes described in (iii) in Note 5 to Orkla ASA’s financial statements: Remuneration and contractual arrangements.

Note 5 to Orkla ASA’s financial statements: Remuneration and contractual arrangements

12. Remuneration of the executive management