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 CEO’s, CFO’s, and COO’s remuneration packages are detailed in note two to Wallenius Wilhelmsen’s accounts. The board’s statement on remuneration to executive personnel is also a separate appendix to the agenda for the AGM and the AGM 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 emphasises 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).
Long-term variable remuneration
In addition to short-term variable remuneration, a long-term incentive plan for senior and other executives was introduced in 2018 and approved by AGM also in 2019, to promote and reward a long-term strategic perspective, while helping senior and other executives build a meaningful personal share ownership in the Company. The plan, which is a bonus scheme resulting in a monetary amount, will make awards over Wallenius Wilhelmsen ASA’s common shares to the equivalent amount. The bonus is assessed over and becomes payable after three years, subject to continued employment and the achievement of financial and strategic long-term performance targets including return on capital, market capitalisation and a discretionary element.
The maximum annual payments can be 50% of base salary for the CEO, 40% of base salary for the remaining senior executives and 30% of base salary for other executives.
Deviations from the Code: None