Hexagon Annual Report 2019

NOTE 10 PAYROLL, NUMBER OF EMPLOYEES, REMUNERATION, LOANS TO EMPLOYEES ETC. (NOK 1 000) 2019 2018 Wages/salaries and fees 20 859 17 750 Employer’s contribution 7 157 2 542 Pension expense 1 660 2 120 Other contributions 19 645 13 740 Total 49 321 36 152 PAYROLL COSTS There were 11 (10 in 2018) employees in the Company during the financial year. (NOK 1 000) SALARIES AND FEES PAID BONUS 1) NATURAL CONTRI- BUTIONS PAID PENSION PREMIUM VALUE OF AWARDED SHARE OPTIONS TOTAL REMUNE- RATION EXECUTIVE MANAGEMENT Jon Erik Engeset, Group President 3 623 960 20 192 2 025 6 820 Morten Holum, Executive Vice President/Chief Operating Officer 3) 750 3 64 817 David Bandele, Chief Financial Officer 2 158 465 13 187 1 135 3 957 BOARD OF DIRECTORS Knut Flakk, Chairman 585 585 Kristine Landmark, Deputy Chair 320 320 Sverre Narvesen 250 250 Katsunori Mori 2) 0 0 Elisabeth Heggelund Tørstad 200 200 FORMER BOARD MEMBERS Susana Quintana Plaza 200 200 Total remuneration 8 085 1 425 37 443 3 160 13 149 1) Bonuses paid in the year relate to the year 2018 2) Mr. Katsunori Mori has advised the company that he waives any board remuneration for the period he will serve on the board of directors 3) Morten Holum was employed from September 2019. The Chairman of the Board has no agreement relating to termination benefits. In his employment agreement, the Group President has a period of notice of 6 months. He has an agreement for up to 12 months' severance pay. The management of the Group have a target-based bonus agreement. At the end of the year, the following bonuses were allocated: NOK 1 900 thousand to the Group President and NOK 805 thousand to the CFO. Group management participate in the Company's general pension arrangements, which are described in note 8, Pensions. No loans have been made, or security provided for loans, to any member of Group management, the Board or other elected standing committees. Group management participate in the Company's share-based incentive scheme, which are described in note 13, Share- based Payment. As of 31.12.2019 the Group President has 370 thousand (520 thousand) share options and 137 thousand (0) performance share units (PSUs) outstanding. The CFO has 230 thousand (330 thousand) share options and 93 thousand (0) PSUs outstanding. 78 166 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS