Statement on the setting of salaries and other remuneration for senior employees

Norfund complies with the government guidelines laid down on 13 February 2015 with respect to the setting of salaries and other remuneration for senior employees. These are based on changes published in the white paper A diverse and value-creating ownership. “The State’s guidelines for remuneration for senior executives in companies with state ownership” (St. meld. 27 (2013-2014)). The changes were adopted with effect from 30 April 2021, will be submitted to the General Meeting in 2022 and form the basis for the preparation of the Board of Directors’ statement for 2021.

Guidelines for Norfund on the setting of salaries and other remuneration in 2021

The following guidelines apply to the setting of salaries for senior Norfund employees until the ordinary General Meeting in 2022.

The remuneration system is designed to attract and retain competent personnel. In setting salaries, emphasis is placed on the individual’s contribution to fulfilling Norfund’s mandate.

Norfund wishes to promote moderation in executive salaries. The aim in setting salaries is that senior Norfund employees should have pay conditions that are competitive, but not at the top end of the scale, to ensure that Norfund secures and retains sufficient expertise in the Fund.

Norfund considers that other government funds such as the National Insurance Scheme Fund, Export Credit Norway and Investinor form a relevant benchmark.

Setting of salaries

The Board sets the salary of the managing director. The managing director sets the salaries and bonuses of the corporate heads of department who report to him, after executive salary conditions have been endorsed by the Board. This group consists of senior Fund employees. Norfund’s pay conditions for senior employees consist of fixed salary, pension and insurance schemes and other benefits that cover newspapers, electronic communications etc. The fixed salary is subject to regulation in line with pay developments in the financial sector, represented by reference figures from Finance Norway, the results of the main settlement and for the companies Norfund has defined as its peers, and an assessment of the individual’s performance and goal achievement. The managing director sets annual goals for the individual member of the executive group and the Board sets goals for the managing director.

Senior employees have three months notice of termination. The CEO has an agreement for pay after termination of employment equivalent to 6 months’ salary. This arrangement is in line with the guidelines for salary and other remuneration.

Bonus scheme

Norfund has a bonus scheme that covers all company employees except the managing director. The bonus scheme is in line with the guidelines’ requirement of variable pay.

Bonus candidates are proposed by an individual’s line manager for an overall assessment by the management team. Bonuses awarded to both senior and other employees are fixed by the managing director. Bonuses are awarded once or twice a year, and individual bonuses vary from NOK 10 000 to NOK 100 000 per award, with NOK 100 000 as the maximum amount per year.

Pension and insurance conditions

In 2018 Norfund closed its defined benefit pension scheme to new employees, and now offers a defined contribution scheme to all company employees, including managers. The transition to the new scheme was voluntary for existing employees. This means that Norfund has both a defined benefit and a defined contribution scheme for agreements entered into before the closure of the former in 2018. The defined benefit scheme entitles the individual to defined future benefits and depends primarily on the number of qualifying years, pay level on reaching retirement age and size of National Insurance benefits. Agreements entered into prior to 2018 exceed the current guidelines for senior executives, as the previous scheme entailed a full qualifying period of 30 years and pension payments of 70% of salaries up to 12 G The pension scheme satisfies the requirements of the Act on Mandatory Occupational Pensions. There are currently 47 employees covered by the defined contribution scheme and 30 by the defined benefit scheme. Norfund also has a scheme which entitles employees to pension rights for pay in excess of 12 G. This scheme was closed to new members in 2012. The scheme, which is funded from operations, consists of 66% of pay in excess of 12 G with a retirement age of 67 and a full qualification period of 30 years in the calculation base. If the service period is calculated as being less than 30 years, the pension is reduced proportionately. On termination of employment or on reaching retirement age, employees receive a settlement for the value of the amount saved. This scheme currently covers 4 employees. In the defined contribution scheme, 7% of salary is set aside from pay from 0–7 G, and 20% from salaries of 7.1–12 G. The costs of both schemes are included in the calculation of pension expenses.

Senior Norfund employees are covered by insurance schemes that apply to all Norfund employees.

Review of the financial statements 2021

Salary policy in the 2021 accounting year has adhered to the principles of the Management Salary Statement as adopted by the General Meeting on 24 June 2020 and 21 June 2021. Salary adjustment for the CEO and other members of management in 2021 was 3.5% on average. The total pay adjustment in 2021 for the management team, including the CEO, amounted to NOK 547 050.

Wages, salaries and other payroll expenses Norfund
(In 1000s of NOK)20212020
Wages and salaries106 92891 451
Employer's social security19 81816 334
Pension expenses18 33014 694
Other benefits13 06512 795
Total wages, salaries and other payroll expenses158 142135 273
Pay for Senior Employees
Title Salary Bonus Insurance and other payment in kindPensionTotal
Jan Tellef ThorleifssonCEO2 954 288020 305203 3673 177 961
Ylva LindbergEVP Strategy & Analysis1 708 65450 00019 880198 4841 977 018
Cathrine Kaasen ConradiEVP CFRO until 30.11.1 703 83650 00023 414196 2541 973 504
Fride Andrea HæremEVP CFRO from 01.12.555 09608 94968 945632 990
Thomas Fjeld HeltneEVP Legal Department1 705 42150 00020 038197 9251 973 384
Erik SandersenEVP Financial Institutions1 926 60250 00019 795366 8652 363 262
Mark DavisEVP Clean Energy2 109 09450 00083 6361 055 0513 297 781
Ellen C. RasmussenEVP Scalable Enterprises1 750 35050 00019 896200 2482 020 494
Olaug SvarvaChair285 000000285 000

Salaries for senior employees are reported for the whole year, including the period when they were not senior employees.

Remuneration to Norfund’s Board of Directors

Norfund’s Board of Directors consisted in 2021 of the Chair and 8 Board members. In 2021 the General Meeting set remuneration to the Chair at NOK 285 000, while remuneration to the Board members, with the exception of the two employee representatives, was set at NOK 142 500. In 2021 the General Meeting set remuneration for the chair of the Risk and Audit Committee at NOK 77 000 and for the members of the committee at NOK 67 000.

The company has no share or option schemes for its employees, and there are no plans for such schemes.

The highest total bonus allocation in 2021 was NOK 100 000. The bonus scheme accounted for 2.6% of Norfund’s payroll expenses in 2021, a total of NOK 2 850 000. Bonuses are paid for extraordinary performance, and in 2021 the average payment to recipients of bonuses was NOK 23 554. The highest payment represented 7% of the individual’s salary. A number of employees, including some senior employees, were awarded a bonus in 2021. The awarding of bonuses was based on a strong performance during a demanding period marked by Covid and difficult working conditions. A record-high commitment level was achieved through the year, and a number of portfolio companies saw positive developments.

Auditors Fee
(Figures in 1000s of NOK)20212020
Statutory audit627607
Accounting assistance014
Other attestation services00
Other services (including lawyer's services)685578
Total1 3121 199

Auditor’s fee is inclusive of VAT.

In addition, business partners of Deloitte AS in other countries delivered other services expensed in the amount of NOK 1.6 million (4.6 million in 2020).

Number of permanent employees

The company had 111 (102) employees at the end of 2021. The number of full-time equivalents was 106 (100.5).


In addition to the employee pension plans described in the Executive Pay Statement, local employees at Norfund’s regional offices in South Africa, Ghana, Thailand, Kenya and Costa Rica have defined contribution pension plans. Norfund therefore has no obligations other than what has been paid through the year. In 2021, NOK 1 709 351 (1 943 140) was expensed in connection with these schemes.

Financial Assumptions
Discount rate1.90%1.70%
Expected return on plan assets1.90%1.70%
Salary adjustment2.75%2.25%
Pension adjustment2.50%2.00%
Adjustment of the basic amount (G) in the National Insurance System2.50%2.00%
Employer's social security contribution19.10%19.10%
Financial Assumptions
(Figures in 1000s of NOK)20212020
Net present value of pension earned in the period9 9487 529
Capital cost of previously earned pensions2 2022 070
Expected return on plan assets-1 421-1 737
Administrative costs1 1331 133
Accrued employer's social security contribution*2 4381 366
Net pension liabilities for the year incl. employer's13 92811 433

*Employer’s social security contribution is calculated on the amount paid in.

Estimated Pension Liabilities
Estimated pension liabilities130 23422 669152 903
Estimated plan assets*92 358092 358
Net pension liabilities 31.1237 87622 66960 545
Accrued employer's social security contribution**7 2344 33011 564
Net pension liabilities 31.1245 11026 99972 108

*Estimated plan assets consist of paid premiums invested in Nordea Life.
**Accrued employer’s social security contribution is based on net pension liability.

Reconcilliation Opening/Closing Balance
Carrying amount net pension liabilities 01.01 incl. employer's social security contribution58 07425 632
Net pension expenses for the year incl. employer's social security contribution13 92810 215
Actuarial gain/loss charged directly to equity14 97532 469
Pensions paid, early retirement / unfunded, incl. employer’s social security contribution-1 916-1 161
Investment in plan assets, etc., incl. employer’s social security contribution-12 953-9 082
Carrying amount net pension liabilities 31.12 incl. employer's social security contribution72 10858 074
Nordea Life's Asset Mix*
30 September30.09.2020
Bonds at amortised cost12.7%3.50%
Short-term bonds/certificates60.5%61.30%
Total financial assets100.00%100.00%

* Known values at calculation date

Norfund has paid into a separate fund intended to meet future commitments related to the unfunded scheme, the book value of which was NOK 24.2 million as of 31.12.