Equinor, oil | The head of Equinor received a salary of 15.3 million: this is what the board thinks about his efforts

STAVANGER (Nettavisen Økonomi 🙂 Equinor has been in severe weather conditions since Dagens Næringsliv last week mentioned a critical corporate culture, huge cost overruns, and a loss of NOK 200 billion related to the company’s US investment. USA

At Thursday’s general meeting, Equinor chairman Jon Erik Reinhardsen made it clear from the start that the board was dissatisfied with the cost culture, and that the $ 1 billion excesses revealed clear weaknesses in the systems of control of the oil giant.

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Later in the general meeting, Equinor’s board and management took a break from the noise surrounding the company’s efforts in the United States and were able to look back on the 2019 results. The general meeting approved the annual accounts of the last year and a dividend of $ 0.27 per share was distributed for the fourth quarter.

Towards the end of the more than two-hour general meeting, President Reinhardsen went to the pulpit and evaluated Vice President Eldar Sætres’ salary against the goals the board had set for the oil giant in 2019.

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Lost 2 million bonus

In addition to a fixed salary of NOK 9.4 million, Sætres’ salary is linked to a bonus scheme and a long-term intensive scheme. Setter’s bonus in 2018 was $ 551,000, about $ 4.48 million, and it dropped to $ 282,000, $ 2.48 million in 2019.

– In our evaluation of the CEO’s performance, and consequently the basis of its 2019 annual bonus, the board has emphasized that deliveries in important areas have been above, below and below the targets set for 2019, Reinhardsen said in the evaluation.

Sætre’s total salary ended at DKK 15.3 million last year, down from DKK 16.8 million in 2018.

The Chairman of the Board raised the following points such as Sætre and the Group Management didn’t deliver well enough in:

• Actual or potential frequency serious events went up, and not below: Equinor ended with 0.6 serious incidents per million hours of work, compared to 0.5 the previous year. The goal was 0.4.
• production efficiency, which was at 87.5 percent, was lower than the target, and some platforms slowed efficiency. Oil production was lower last year than in 2018: Oil production in 2019 was 2.074 million oil equivalents per day, up from a record 2.11 million in 2018.
• Cost developments, which consists of Equinor’s fixed operating costs, as well as administrative and sales costs per barrel of oil equivalent, did not meet the target.
  “The evolution of costs did not reach the objective and needs a high continuous focus in the future,” President Reinhardsen said during the general meeting.
• Equinor’s total return to shareholders It was also not good enough, according to the advice, even though the relative return on capital employed was better than the company’s goal. Equinor’s board wanted to be above average in terms of shareholder performance in a ranking of twelve comparable companies, but it ended up being number ten.

However, the Chairman of the Board gave CEO Sætre wages for several things, for example, that the overall personal injury rate was the best in the company’s history, that the number of oil and gas leaks was low, and that exploration value creation showed positive development last year.

The CEO and management have also given the bonus for 2020.

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Climate initiatives rejected

Before the general meeting in Stavanger on Thursday, sent Greenpeace sent an SMS to around 40,000 Equinor shareholders with a request to vote no for oil extraction in vulnerable offshore areas.

WWF and Greenpeace had jointly submitted a proposal to the general meeting that Equinor should refrain from oil and gas activities in certain areas.

“To reduce climate risk, which includes financial, reputational, physical and liability risks, Equinor shareholders are asking to refrain from exploring and drilling in new areas, immature areas or areas of high ecological value and vulnerability,” wrote the environmental organizations in the proposal.

Several other shareholders, including Doctor’s Climate Action and Grandparents’ Climate Action, had submitted climate proposals in advance with the aim of stopping all exploration and drilling of samples, taking into account the health effects of fossil energy and stopping all Oil and gas activity from the Norwegian continental shelf.

The six climate proposals were not approved by the Board of Directors.

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