24 JOTUN GROUP 3 PAYROLL EXPENSES Payroll expenses are the total disbursements relating to remuneration of personnel employed by the Group. These expenses comprise direct salaries and holiday pay, bonuses, pension costs and public taxes/charges relating to the employment of personnel. WAGES AND OTHER SOCIAL COSTS (NOK THOUSAND) 2016 2015 Wages including bonuses 2 069 964 1 995 003 Social costs 255 750 234 845 Pension costs defined contribution plans 168 449 180 088 Pension costs defined benefit plans, ref. note 4 13 250 20 451 Other personnel costs 94 305 90 355 Total 2 601 717 2 520 743 Average full-time equivalent 6 909 6 794 BONUS SYSTEMS Jotun Group has a system of annual bonuses that rewards improvement. The annual bonus system applies to senior management and is limited to a maximum of 20 per cent of annual basic salary. Further, all members of Jotun Group Management are part of an annual profit-dependent bonus system limited upward to 50 per cent of ordinary annual salary. REMUNERATION TO PRESIDENT & CEO (NOK THOUSAND) Ordinary salary Bonus Benefits in kind Pension cost Total Morten Fon 5 101 2 500 260 1 586 9 447 The President & CEO is part of a previous pension scheme that includes a mutual opportunity to discontinue employment in whole or in part up to five years earlier than a stipulated retirement age of 67 years. Further, the CEO is part of an annual profit-dependent bonus system limited upward to 50 per cent of ordinary annual salary. Jotun Group has no obligation to give the President & CEO or the Chairman of the Board special remuneration upon discontinuance or change of employment or office. Should the President & CEO’s employment discontinue, his contract has a clause stipulating that a oneyear “competition quarantine” may be imposed with compensation. The President & CEO has a notice period of 6 months. The Group has not given any loans or guarantees to the President & CEO, the Chairman of the Board, or to any shareholders or members of the Board and Corporate Assembly. REMUNERATION OF THE BOARD OF DIRECTORS (NOK THOUSAND) Ordinary compensation Bonus Benefits in kind Pension cost Total Board of Directors 2 850 – – – 2 850 Corporate Assembly 180 – – – 180 Total 3 030 – – – 3 030 Shares owned by members of the Board of Directors and the Group Management are specified in note 17. EXTERNAL AUDITOR REMUNERATION (NOK THOUSAND) 2016 2015 Statutory audit 11 457 11 506 Other attestation services 146 259 Tax services 2 784 3 178 Other services 1 354 2 187 Total 15 740 17 130
Jotun Annual Report 2016
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