Individual terms agreedperiodof noticemonths

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Unformatted text preview: her other taxable Pension benefit benefits 1) income 5) earned 2) Total 864 230 2 680 844 652 231 34 56 52 116 99 9 291 4 518 7 646 5 804 5 085 4 122 409 761 868 1 793 766 3 078 912 1 656 1 583 1 029 879 205 236 287 1 063 208 12 369 5 430 9 302 7 387 6 114 5 001 614 997 1 155 2 856 974 The executive pension arrangements were reviewed in 2010. The defined benefit plan was adjusted to take away any unintended differences between participating Group Executive Management members and to align with market conditions. The review resulted in two changes. Firstly, the pension entitlement was reduced from 66% to 60% for the first ten years after retirement and 58% thereafter. Secondly, the individually defined cap on pensionable income was removed, now calculating pensionable income of the full annual base salary, except for the Group CEO who has an individual cap. As a result of review in 2010, a new pension agreement was signed with Sigve Brekke in 2011 and gave rise to a one-time expense of NOK 13,345,000 in 2011. Jan Edvard Thygesen’s withdrawal from Telenor’s share based incentive programs, annual bonus and vacation pay earned in 2011 and LTI bonus from the LTI programme 2010, normally granted as restricted shares, is settled with a one-time cash element of NOK 2.6 million. Restricted LTI shares acquired in the LTI programmes from 2009 to 2011 are released. The amount is not included in the table above. /page 81/ telenor annual report 2011 notes to the financial statements / telenor group Remuneration to Group Executive Management 2010 Total Annual salary and Pension NOK in thousands base long term bonus Group Executive Management 2010 salary incentive paid 2010 benefits 1) Other other taxable income 5) earned 2) benefit Total Jon Fredrik baksaas 5a) Richard O. Aa (from 1 March 2010) sigve brekke 3a) Morten Karlsen sørby Jan Edvard Thygesen 5b) Kristin s. lund (from 1 March 2010) ingvald Fergestad (from 27 August 2010) Ragnar H. Korsæth (until 1 March 2010) 5c) 4) bjørn Magnus Kopperud (until 27 August 2010) 4) Hilde M. Tonne (until 1 August 2010) 4) 4 800 2 167 2 485 2 950 2 850 2 083 507 333 1 433 1 108 1 434 647 644 734 709 622 303 - - - 1 531 - 1 031 702 1 021 - - 472 480 380 496 154 2 952 544 420 163 84 50 218 186 8 261 2 968 7 112 4 930 5 000 2 868 894 855 2 131 1 674 2 930 496 1 010 1 559 1 225 476 365 68 783 349 11 191 3 464 8 122 6 489 6 225 3 344 1 259 923 2 914 2 023 All figures are exclusive social security tax. include items such as vacation allowance beyond ordinary monthly pay, insurance, company car or car allowance, taxable bonus shares related to Employee share Programme and other benefits. For sigve brekke and Hilde Tonne expatriate allowances are included. 2) The calculations of pension benefits earned are based on the same actuarial and other assumptions as used in the pension benefit calculations in note 27. 3) Entitlement to guaranteed net annual salary as part of his international assignment. The bonus and the lTi are based on the guaranteed net amount. a) sigve brekke was entitled to a guaranteed net annual salary of NOK 2,900,000 in 2011 and NOK 2,700,000 in 2010. b) Hilde Tonne was entitled to a guaranteed net annual salary of NOK 667 000 in 2011. 4) The compensation is based on their respective period in the Group Executive Management. 5) For number of options granted and outstanding as well as their terms, see below. a) Jon Fredrik baksaas exercised share options in 2010 that was reported as additional taxable income of NOK 10,112,000. b) Jan Edvard Thygesen exercised share options in 2011 that was reported as additional taxable income of NOK 170,000 (in 2010, NOK 2,528,000 was reported as additional taxable income as a consequence of exercised share options) c) Ragnar Korsæth exercised share options in 2010 that was reported as additional taxable income of NOK 987,266. 1) Changed pension agreements gave rise to a one-time expense in 2010 related to Jon Fredrik Baksaas of NOK 12,769,000, Morten Karlsen Sørby of NOK 4,911,000, Jan Edvard Thygesen of NOK 8,649,000, Ingvald Fergestad of NOK 69,000 and Bjørn Magnus Kopperud of NOK 2,677,000. Individual terms Agreed period of notice, months severance pay Name base salary months base salary Pension benefits 24 months. in case of new position the severance pay is reduced by 75% of income in new position 6 months 6 months 6 months 6 months 6 months 6 months 6 months 6 months 60% defined benefit of a defined pension-qualifying income of NOK 4,833,600 (per 01.01.2011) until the age of 70, thereafter 58%, and 30% defined Contribution above the defined pension-qualifying income. The pension-qualifying income are adjusted with CPi-ATE (consumer price index adjusted for changes in indirect taxes and excluding energy products) January 1 every year. Retirement age 60. defined Contribution, 4% of 1–6 G, 8% of 6–12 G and 30% of base salary above 12 G. in addition, annual contribution of 10% of base salary for early retirement scheme. Retirement age 65. defined Contribution, 4% of 1–6 G, 8% of 6–1...
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