Fiven Annual Report 2020

Note 9 Employee benefit obligations (pensions) Amounts in EUR thousand 2020 2019 Defined contribution plans 1,224 519 Defined benefit plan 61 66 Total pension cost 1,285 585 Pension obligations Present value of pension obligation 403 413 Fair value of plan assets - - Net unfunded pension obligations 403 413 Defined contribution plans Defined contribution plans are the main pensions plan for Fiven's Norwegian entities, where the contribution to each individual pen- sion plan is 4 per cent of annual salary up to 7.1G and 15 per cent of annual salary between 7.1-12G and 5 per cent between 1G and 7.1G and 8 per cent between 7.1 and 12 G for Fiven Norge AS and Fiven ASA respectively. 1G refers to the Norwegian national insurance scheme's basic amount, which was NOK 101,351 as of 1 May 2020. In addition, Fiven Norge AS participates in a Norwegian mul- ti-employer early retirement scheme called AFP, where sufficient information to calculate each participant's pension obligation is not available, is accounted for as it is a defined contribution plan in accordance with the Ministry of Finance's conclusion. The participants in the pension plan are jointly responsible for 2/3 of the plan's pension obligation, the government is responsible for the remaining part. The yearly pension premium in 2020 is 2.5 per cent of the employees' salary between 1 and 7.1G, covering this year's pension payments and contribution to a security fund for future pension obligations. The premium for 2021 in percent of salary will be equal to 2020. The subsidiary in Brazil has a Defined Contribution plan with a contribution from the company. The employee participates in the plan with a percentage that may vary from 2 per cent up to 7 per cent of their salary. The company contributes with 150 per cent of the employee contribution. The subsidiary in Belgium has a Defined Contribution plan with a contribution from the company and from the employee. The company contribution varies from 1.4 per cent to 4.23 per cent of the monthly salary, the employee contribution is equal to 50 per cent of the company contribution. Defined benefit plans Fiven Norge AS has an unfunded benefit plan covering retired employees only. There are no new pensioners entering the plan. The yearly expense (61 TEUR in 2020 and 66 TEUR in 2019) is mainly interest and contractual yearly adjustments of the pensions Note 10 Management remuneration The key principals for determination of the Group’s remuneration is to encourage a strong, sustainable and performance-based culture. The remuneration policy should also ensure that Fiven has a strong ability to attract, retain and develop qualified peo- ple with adequate leadership and professional competencies and skills, in order to support and contribute to profitable growth and creation of shareholder value. Determination of remunera- tion also takes into account the breadth and complexity of the company’s worldwide operations and reflects the company’s objections for sustainability and growth. The company shall seek to offer a remuneration level on market terms satisfying the company's need to recruit and keep highly qualified personnel on executive management level. More specifically, this implies that the total compensation of the exec- utive management consists of a fixed compensation and other remuneration at a level reflecting the principles mentioned above. Remuneration includes: 1. Fixed compensation - The fixed base salary will be deter- mined based on the following criteria: job level, local conditions in the labor market, performance level, budget and guidelines for annual salary review in line with general salary trends. The fixed compensation shall be reasonable and competitive and represent a significant component in the executive management compensation. Fiven Annual Report 2020 48   Financial statements