ODIN’s remuneration schemes have been adopted by the Board of ODIN Forvaltning AS after discussion in the Remuneration Committee. This note provides a brief description of ODIN’s remuneration schemes.
ODIN aims to have competitive remuneration. The composition of fixed and variable remuneration has to be balanced, and the fixed portion of the remuneration should be sufficiently high for ODIN not to have to pay the variable portion.
Salaries in the company are determined on the basis of a market assessment. The salary policy at ODIN Forvaltning AS is to offer competitive conditions without being a leader in salary levels.
The purpose of variable remuneration is to incentivise good results and profitability, both for customers and for the company in the short and long term. At ODIN Forvaltning AS, the CEO, members of the fund management team and employees in distribution, sales and marketing all have variable remuneration agreements in place.
The Board acts on recommendations from the Remuneration Committee in setting the criteria for variable remuneration, and assesses target attainment and decides on the payment of variable remuneration. The criteria for the CEO’s variable remuneration are linked to financial criteria for ODIN Forvaltning, such as the year’s profit before tax, returns on the funds and growth in assets under management. Parts of the variable remuneration are also linked to implementation and delivery of the approved strategy and decisions by the Board The maximum variable remuneration is 100 per cent of fixed salary.
Employees in the management team
The investment director is covered by a separate scheme for employees in fund management. Sales, distribution and marketing directors are covered by a separate scheme for sales, distribution and marketing. Within the scope of the remuneration scheme, the CEO determines the variable remuneration for these managers. Other senior executives have agreements on fixed salary only.
Employees in sales, distribution and marketing
The bonus criteria for sales, distribution and marketing staff are related to net new sales and profits before tax and bonuses. The maximum variable remuneration is 200 per cent of fixed salary. Within the scope of the remuneration scheme, the CEO determines the variable remuneration for employees in sales, distribution and marketing.
Employees in management
The bonus criteria for the investment director and employees in fund management are related to the management results achieved and profits before tax and bonuses. The maximum variable remuneration is 300 per cent of fixed salary. Within the scope of the remuneration scheme, the CEO determines the variable remuneration for employees in management. Employees in non-executive positions who are not covered by the provisions on deferred payment of variable remuneration have half of their bonus paid in cash. The remaining half is allocated in the form of shares in their chosen ODIN fund, with a lock-in period of at least one year.
General bonus scheme
Other employees of ODIN Forvaltning AS, with the exception of staff with monitoring duties, are covered by a general bonus scheme. The criteria are determined by the Board from year to year, and it is the Board that decides whether to pay any bonus under the scheme.
Directors of ODIN Forvaltning AS do not receive any variable remuneration.
Deferred payment of variable remuneration
The CEO and members of the management team who receive variable remuneration are defined as senior executives and are covered by the provisions on deferred payment of variable remuneration. For these positions, variable remuneration is earned over a period of two years and paid out over a period of three years.
Employees within fund management, whose work duties have a major bearing on risk exposure for funds under their management, and/or for ODIN Forvaltning AS, are subject to similar limitations to senior executives. This currently applies to all fund managers in ODIN Forvaltning AS.
Conditional payment of variable remuneration
For positions which are covered by provisions on deferred payment of variable remuneration,
50 per cent of the variable remuneration is paid out as part of the bonus award. All variable remuneration, including the portion awarded immediately, must be paid half in cash and half in fund units. The fund units are subject to a company-wide lock-in period of six months.
The portion of the remuneration to be paid in securities funds must be invested in units in one to three of ODIN’s securities funds. The employees in these job categories choose for themselves which of ODIN’s securities funds the deferred variable remuneration should be invested in.
The deferred bonus payment is paid as salary, evenly distributed over a period of three years.
Loss of or reduction in deferred variable remuneration
The Board of ODIN Forvaltning AS can reduce the deferred variable remuneration for employees if there are factors indicating that it is right to do so. Factors causing a partial or complete reduction in deferred bonus payments are: A loss which means that the company no longer meets the equity/capital adequacy requirements, employees breaching laws, regulations, circulars, or internal rules, employees absent for an extended period, and employees leaving the company for whatever reason.
The application of the remuneration scheme is evaluated each year by an independent control function.