With reference to article 10, subsection 3, of the Articles of Association, the general meeting has adopted the following guidelines for remuneration policy for the senior management of the company.

 

P/F Bakkafrost´s remuneration policy for Senior Management

 

The purpose of Bakkafrost´s remuneration policy is to fulfil the established recommendations on corporate governance and to create the framework for long-term values.

Remuneration to members of Senior Management is detailed in the Annual Report and will also be published on the Company´s Investor Relations website.

 

Board of Directors’ remuneration

Remuneration to the Board of Directors of P/F Bakkafrost is decided by the General Meeting.

The Election Committee of the Company makes a recommendation to the General Meeting with regard to the size of the remuneration to be paid to the Members of the Board of Directors of the Company. The Board of Directors may not deviate from the decision of the General Meeting.

 

Senior Management’s remuneration

Senior Management is contractually employed. There is an annual assessment of the remuneration. All changes of the contract shall be in writing and confirmed by the Board of Directors.

Decisive to the remuneration to Senior Management is the objective to ensure the Company´s continued possibilities to attract and maintain the best qualified members of Senior Management.

The details in the total remuneration to the Senior Management are comprised in consideration of market practice and the Company´s specific needs.

Remuneration of Senior Management may comprise fixed pay, bonus in cash, bonus in the shape of shares, hereunder shares in the Company, and pension.

The total level of the non-variable elements in the remuneration is established in consideration of market level, as e.g. the Company´s size, and course of development.

Members of Senior Management receive pension as a fixed portion of the non-variable remuneration. A part of the pension may be paid as shares, hereunder as shares in the Company.

The variable remuneration to members of Senior Management is in general fixed with consideration to their goal achievement.

Share based bonus is based on market value according to recognized guidelines.

The variable remuneration may not exceed the fixed remuneration in a financial year.

The Board of Directors decides within the framework of this policy all aspects of the remuneration to the Senior Management, including severance terms.

 

Possible deviations

The Board of Directors may not deviate from the guidelines regarding the maximum amount of the variable remuneration for the Management of the Company.

 

Liability

This remuneration policy is adopted by the Board of Directors of P/F Bakkafrost and by the annual general meeting in April 2018.

The Board of Directors is responsible for performing any necessary adjustments and resubmitting any changes to the general meeting for approval.