Norges Bank

Mandate for the Executive Board’s Remuneration Committee

Laid down by Norges Bank’s Executive Board on 17 June 2009 and last amended on 17 December 2021 with effect from the same date. The mandate has been laid down pursuant to Section 2-4, sixth sub-section, of the Central Bank Act and Chapter 2-2 of the Rules of Procedure for Norges Bank’s Executive Board.

Pursuant to Section 5-2 (3) of the Ministry of Finance’s mandate for the Government Pension Fund Global (GPFG), remuneration arrangements for employees of investment management (NBIM) shall be based on the requirements in Chapter 2, Subchapter XI, of the Regulation of 21 December 2011 No. 1467 relating to the Securities Funds Act “with necessary adjustments”.

1. Purpose

The Remuneration Committee is a preparatory and advisory working committee for the Executive Board. The Committee shall contribute to thorough and independent discussion of matters pertaining to remuneration arrangements at the Bank. The Executive Board has decided that the statutory remuneration committee for investment management shall also prepare matters relating to Central Banking Operations.

2. Appointment and organisation

The Remuneration Committee comprises four members, of which one member is designated as chair. Three of the members of the Committee are elected by and from among the Executive Board’s external members and one member is elected from among the employee representatives on the Executive Board. Members are appointed for a one-year term.

The Remuneration Committee shall have a composition that enables a competent and independent assessment of remuneration arrangements, their implementation and the incentives created in investment management.

The General Secretariat and NBA HR shall provide the Committee with the necessary assistance and the General Secretariat serves as the Committee’s secretariat.

3. Meetings

The Remuneration Committee meets whenever the Committee deems it necessary. The Committee shall prepare a schedule for the year’s meetings.

The Committee itself decides who from the administration shall attend meetings.

Joint meetings may be arranged with other committees as necessary.

4. Responsibilities and authorisations

The Remuneration Committee is answerable to the Executive Board for the performance of its tasks. The Committee’s activities do not change the responsibilities of the individual Executive Board members or of the Executive Board as a whole.

The Committee may on its own initiative ask the administration to give an account of topics that the Committee deems it has a need to have further elucidated and that have not been brought before the Executive Board as an item of business.

5. Tasks

The tasks of the Remuneration Committee are focused on strengthening and streamlining the Executive Board’s work related to matters pertaining to remuneration arrangements at the Bank. The Committee shall prepare all matters pertaining to remuneration schemes to be discussed by the Executive Board, including:

  • Material terms of employment (including severance remuneration, if any) as well as salary intervals for the CEO of NBIM and employees that are members of NBIM’s leader group,
  • Salary ranges for departmental directors and employees in Central Banking Operations and Norges Bank Administration whose salaries are determined by the governor,
  • Principles for performance-based remuneration at Norges Bank,
  • Annual overall limits for paying performance-based remuneration for Norges Bank,
  • Annual evaluations of the implementation of and compliance with the set limits and requirements for remuneration arrangements,
  • Annual assessments of the Bank’s remuneration arrangements (outside of negotiated agreements),
  • Regular briefings on the Bank’s overall remuneration arrangements, including total remuneration, pension plans, loan schemes, insurance etc.
  • Decisions on earning and disbursement of performance-based pay for previous years.

Each year, the Committee shall evaluate its own performance.

6. Minutes, reporting, etc.

The Remuneration Committee submits written recommendations to the Executive Board in individual matters with an account of what has been discussed in particular and otherwise reports from its meetings at the Executive Board meeting immediately following. A possible recommendation may be that a matter be sent back to the administration for further discussion.

The minutes of meetings of the Remuneration Committee shall be submitted at Executive Board meetings for information.