SKAGEN's Remuneration scheme
The Board of Directors of SKAGEN has adopted a remuneration scheme for the company's employees and union representatives.
The remuneration scheme is consistent with the Regulation of 1 December 2010 on remuneration schemes for financial institutions, investment firms and securities fund management companies.
Fixed salaries for employees are based on the individual person's background and position. As SKAGEN's sources of revenue are volatile, the fixed salaries are set at a moderate level. Fixed salaries for leading employees, for employees whose duties are of major importance for the company's risk exposure and employees with control functions must be sufficient to ensure that the employee is not dependent on variable remuneration.
In addition, SKAGEN has a profit sharing programme for its permanent employees. A defined proportion of the company's profits are distributed, both collectively and by way of discretionary awards.
Discretionary variable remuneration is awarded following an assessment of the employee's contribution to the company, including achievement of previously determined targets, responsibilities and compliance with and attitude towards SKAGEN's values.
All employees are evaluated on a six-monthly basis. The foundation for any discretionary variable remuneration to managers is their financial and non-financial performance over the last two years.
Half of the variable remuneration to leading employees, etc., is retained and paid out gradually over a three-year period.
The retained portion is invested in SKAGEN's securities fund prior to payment to the employee, thus ensuring that the remuneration reflects the value growth of the company's customers. The retained portion must be reduced if profit trends or subsequent company results warrant this.
The Board of Directors of SKAGEN has also decided that variable remuneration to certain other employees, including all portfolio managers, must be similarly retained and invested in SKAGEN's securities fund.
Board Members receive only a fixed remuneration.