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annual return on the accrual. The annual accrual is 4% of the annual Base Salary up to 6 G (G = base amount of Norwegian Social Security),
8% from 6 – 12 G and 30% of Base Salary above 12 G. Three members of the Group Executive Management are currently covered by this arrangement. In addition, these three are entitled to an annual accrual of 10% of Base Salary for service in the Group Executive Management.
This accrual is limited to ten years of service and is meant to ensure the pension entitlements up to the general retirement age of 67.
There were some changes in the composition of the Group Executive Management in Telenor Group during 2011. New Group Executive
Management members are Oddvar Hesjedal, Hilde Tonne, Berit Svendsen and Bjørn Magnus Kopperud (constituted). All members of the
current Group Executive Management in Telenor Group have agreed pension terms and conditions prior to the Government’s remuneration
guidelines of 2011.
The Group CEO and members of the Group Executive Management, except three executives, are covered by the previously applied defined
benefit arrangement. The Group CEO is entitled to retire at age 60 and the other Executives retire at age 62 or 65, based on individual
agreements. The pension entitlement is 60% of the annual Base Salary the first ten years after the retirement and thereafter 58%. The Group
CEO has a defined pension-qualifying income equal to NOK 4.9 million as of 1 January 2012. The pension-qualifying income is adjusted for
CPI-ATE annually. The Group CEO is entitled to a defined contribution of 30% of salary above the cap in the defined benefit scheme.
The current defined contribution plan for salaries above 12 G is an unfunded plan which has been viewed as the most practical, common and
efficient way of organising a pension scheme. However, a new pension scheme for salaries above 12 G in Telenor’s Norwegian operations is
being evaluated during 2012 and is planned implemented during 2012/2013 to apply for new hires. The aim with a future pension scheme is
to have an effective and lasting pension scheme that continues to offer competitive total remuneration to key personnel and top Executives
within the remuneration guidelines from the Government. Furthermore, any new terms and conditions should allow for necessary rotation and
mobility to/from the Group Executive Management, also assessing the need for an early retirement plan.
The Group CEO and Executive Management are covered by the general insurance arrangements applicable within Telenor ASA.
The Group CEO and Executive Management are entitled to Severance Pay in case of notice based on Company circumstances. The Group
CEO has Severance Pay of 24 months Base Salary, while the rest of the Group Executive Management has 6 months Base Salary calculated
as from the expiry of the notice period. The notice period is 6 months. The current terms and conditions for Severance Pay are in accordance
with the remuneration guidelines from the Government.
Furthermore, the Group CEO and Executive Management are entitled to other benefits such as company car or car allowance, electronic
communication and newspapers. /page 80/
telenor annual report 2011
notes to the financial statements / telenor group 4. Remuneration Principles and implementation previous Fiscal year
The remuneration principles applied in 2011 for the Group CEO and Executive Management was basically the same as explained above for
2012. The annual review of the Base Salary for the Group CEO and Executive Management is effective as of 1 January. Last year’s review was
conducted during first quarter.
Actual remuneration to the Group CEO and Executive Management
During 2011 the Group Executive Management has consisted of Jon Fredrik Baksaas (CEO), Richard O. Aa, Jan Edvard Thygesen (until
13 November 2011), Bjørn Magnus Kopperud (from 14 November 2011), Morten Karlsen Sørby, Sigve Brekke, Kristin Skogen Lund, Ingvald
Fergestad (until 7 April 2011), Oddvar Hesjedal (from 8 April 2011), Berit Svendsen (from 14 September 2011) and Hilde Tonne (from
14 September 2011). Aggregate remuneration including pension cost for the Group Executive Management was NOK 52 million in 2011
and NOK 46 million in 2010. The pension costs included in these figures were NOK 11.1 million in 2011 and NOK 9.3 million in 2010. The
remuneration includes the Long Term Incentive granted in 2011 and 2010. See description in the Statement above. For details see tables
below. None of the members of the Group Executive Management have loans in the company.
Remuneration to Group Executive Management 2011 Total Annual salary and base long term bonus Group Executive Management 2011 salary incentive paid 2011 Jon Fredrik baksaas Richard O. Aa sigve brekke 3a) Morten Karlsen sørby Jan Edvard Thygesen (until 13 November 2011) 4) 5b) Kristin s. lund bjørn Magnus Kopperud (from 14 November 2011) 4) berit svendsen (from 14 september 2011) 4) ingvald Fergestad (until 7 April 2011) 4) Oddvar Hesjedal (from 8 April 2011) 4) Hilde M. Tonne (from 14 september 2011) 3b) 4) 5 000 2 750 2 900 3 070 2 500 2 650 375 705 438 1 677 667 NOK in thousands 1 432 647 643 734 709 622 - - 378 - - 1 995 891 1 423 1 156 1 224 619 - - - - - Ot...
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This document was uploaded on 03/21/2014.
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