The company currently has no stock option schemes for any of its employees.

The remuneration for the CEO is discussed annually and reviewed by the Board of Directors without the CEO participating in any of these discussions. The CEO is entitled to an annual bonus based on an evaluation undertaken by the Board of Directors and the bonus is made at its own discretion. In making its decision, the board considers general relative performance of the Company, targets achieved, the cash flow results, the net results and the yield for the shareholders. The Board of Directors also approves, on a general basis, the remuneration and terms of employment for key employees reporting to the CEO. Some of these senior employees have bonus arrangements or profit split arrangements. The bonus arrangements for the senior employees are determined at the discretion of the CEO. The Board refers to Guidelines for determining remuneration for leading employees in I.M. Skaugen that will be issued to the yearly annual general meeting. A summary of this is also described in the notes to the annual accounts.

The Board of Directors has evaluated the need for a compensation committee but believes that there is no need for a special compensation committee at this time. To date, the Chairman has performed this role and he consults with other Board members before making proposals to the entire Board with regard to compensation issues for the CEO.

The remuneration, pension schemes and severance pay for the CEO and leading employees are presented in the notes to the annual accounts.