Wallenius Wilhelmsen’s remuneration policy covers all employees and is developed to ensure the company attracts and retains competent employees. The remuneration principles are communicated to all employees to ensure a common understanding of expectations and rewards, both linked to the Company’s strategic ambitions, financial targets and business standards.
The Board determines the group CEO’s remuneration and establishes the framework for adjustments for other employees. Salary adjustment for each employee is settled administratively within the limits set. For these purposes the administration carries out a comparison with salary conditions in other companies and looks to the general level of pay adjustments in the relevant markets.
An overview of employee benefits, including salary and other components of the Chief Executive’s, CFO and COO’s remuneration packages, is detailed in note 2 to Wallenius Wilhelmsen’s accounts. The Board’s statement on remuneration to executive personnel is also a separate appendix to the agenda for the annual general meeting and the annual general meeting shall give an advisory vote regarding the statement of the fixed remuneration and approve the statement of the variable remuneration.
Short-term variable remuneration
As a key component of the total remuneration package, the annual, variable pay scheme emphasizes the link between performance and pay and aims to be motivational. It aligns the senior executives with relevant, clear targets derived from the overall strategic goals. The variable pay scheme takes into consideration both key financial targets and individual targets (derived from the annual operating plan).
For CEO, maximum annual payments can be 50% of base salary and for the other senior executives this varies with position up to 50% of base salary. The Board reserves the ability to make exceptional additional awards for exceptional performance.
Long-term variable remuneration
In addition to short term variable remuneration, a long-term incentive plan for senior executives was approved by the AGM in 2018 in order to promote and reward a long-term strategic perspective whilst helping senior executives build a meaningful personal share ownership in the company. The plan will make awards over Wallenius Wilhelmsen ASA common shares, which will vest after three years, subject to continued employment and the achievement of financial and strategic long-term performance targets.
Deviations from the Code: None