Equinor, Annual Report on Form 20-F 2021
177
Main elements - Equinor executive remuneration
Remuneration
element
Award level
Base salary
Attract and retain the right
individuals by providing
competitive but not market-
leading terms.
We offer base salary levels which are aligned
with and
differentiated according to the individual's responsibility,
performance and contribution to company’s goals.
The
level is competitive in the markets in which we operate.
The base salary is normally subject to
annual review based on an evaluation
of the individual’s performance and
contribution to the company’s goals.
Fixed
salary
addition
The fixed salary addition is
paid in lieu of pension
accrual above 12G, applied
as a supplementing fixed
remuneration element to be
competitive in the market.
Members of the corporate executive committee employed
by Equinor ASA prior to 1 September 2017, that have
taken up their first position in the CEC after 13 February
2015, receive a fixed salary addition in lieu of pension
accrual above 12G
19
with reference to the section on
pension and insurance scheme.
No performance criteria are linked to
the fixed salary addition. The fixed
salary addition is not pensionable and
does not form basis for variable pay.
Annual
variable
pay (AVP)
Encourage our pay for
performance culture and
individual’s contribution to
the company’s business
strategy. Rewarding
individuals for annual
achievement of business
objectives, both the “What”
and the “How”.
Members of the corporate executive committee employed
by Equinor ASA are from performance year 2022 entitled
to annual variable pay ranging from 0 – 45% of their
base
salary. Target
20
value is 25%. For members of the CEC
employed outside the Norwegian market, see section
below on remuneration policy for international executives.
The threshold principles and the company performance
modifier are applied (see explanations below).
The company reserves the right to recover all or part
of the
annual bonus, if performance data is subsequently
proven
Performance is measured over one
financial year and is based on the
achievement of annual performance
goals (“How” and “What” to deliver), in
order to create long-term and
sustainable shareholder value.
Assessment of goals defined in the
individual’s performance contract
including objectives related to
selected KPI’s on the balanced
scorecard constitute the basis for
Long-term
incentive
(LTI)
Strengthen the alignment of
top management and
shareholders’ long-term
interests and sustainability of
the company. Retention of
For members of the corporate executive committee
employed by Equinor ASA, the LTI
is calculated as a
portion of the participant’s base salary.
On behalf of the
participant, the company acquires shares equivalent to
the
net annual grant amount. The shares are subject to a
three-year lock-in period and then released for the
participant’s disposal. If the lock-in obligations are not
fulfilled, the executive has to pay back the gross value
of
the locked-in shares limited to the gross value of the
grant
amount.
The level of the annual LTI reward
for the CEC members
employed by Equinor ASA is in the range of 25-30%
of the
base salary. For members of
the CEC employed outside
the Norwegian market, see section below on remuneration
policy for international executives.
The threshold principles are applied to the annual grant.
The company performance modifier is not applied to the
LTI in Equinor ASA.
In Equinor ASA, LTI participation
and
grant level are reflective of the level
and impact of the position and
company performance as reflected by
the threshold.
Pension &
insurance
schemes
Provide competitive
postemployment and other
benefits.
The company offers a general occupational pension
plan
and insurance scheme aligned with local markets.
Reference is made to the section on pension and
insurance scheme.
Employee
share
savings
programme
(SSP)
Align and strengthen
employee and shareholders’
interests and remunerate for
long term commitment and
value creation.
Eligibility extends to all employees at Equinor and in all
markets, subject to local legislation. Participants can
purchase shares up to 5% of base salary.
With effect from 2022 share savings,
bonus shares from
the share saving programme will be
awarded to the CEO and EVPs after
a lock in period of 3 calendar years
after the year of saving.
Other
taxable and
non-taxable
benefits
Attract and retain the right
individuals by providing
competitive but not market-
leading terms.
The members of the corporate executive committee have
benefits in-kind such as company car and health checks.
They are also eligible for participation in the share saving
scheme as described above, and they take part in the
general benefit and welfare program of the company.
N/A
19
G represents the basic amount of the Norwegian
social security system. 1G per 31 December 2021
equals NOK 106,399.
20
Target value reflects satisfactory deliveries according to agreed goals
