Note 1 - Beerenberg

Note 21
Remuneration of key employees
(All amounts in NOK 1,000)
In 2012 the CEO received a salary and other remuneration
totalling 2,621 compared with 2,718 in 2011. The sums
for both years are exclusive of contributions to pension
schemes, which make up 10% of the salary. The CEO has
an agreement that guarantees salary payments for up to 18
months if the employer were to terminate his employment.
A non-compete clause also apply to the CEO in the same
period. The CEO has a performance-based bonus scheme,
identical for all employees in the Group management, which
may not exceed 30% of the annual salary. In 2012 the chairman
of the board received remuneration of 250, equal to
2011. Total remuneration of the board in 2012 was 520 (495
in 2011). A 12-month severance package has been agreed
with the CFO and Deputy CEO. In connection with the
shareholders of Beerenberg Holding signing an agreement
to sell their shares to Segulah IV LP, a Stay-on Bonus for
members of the Group management is triggered. The bonus
agreement entitles the members of the Group managment to
a stay-on bonus if they are still employed 18 months after the
share sale transaction. Potential maximum payment related
to the stay-on bonus is approximately 8,000. The sale of
shares transaction is further described in note 29. No other
bonuses, severance or options than described here are given
to the board of directors or management.
In addition to ordinary salaries, key employees benefit from
free telephones, broadband and mandatory contributionbased
pensions. Key employees also have a supplementary
pension which extends mandatory defined contribution
pension with 2-4 %. Everyone is paid a fixed salary, and no
overtime payments are made.
The key principles for setting management salaries at
Beerenberg are that the company should be able to offer
competitive terms. This relates to the combination of salaries,
benefits in kind and pension schemes. The company operates
in an international environment, a fact that is emphasised
and reflected when setting the level of remuneration.
When setting remuneration for 2013, the company will apply
the same policy as in 2012. This entails being a competitive
employer who attracts necessary expertise and capacity.
The company also wishes to retain expertise and encourage
long-term employment relationships. In respect of salary
levels, the company aims to be in the high to average range
in relation to comparable companies in order to attract “the
best brains”.
Note 22
Warranty liabilities and provisions
The Group has provided a joint bank guarantee for all the
companies in the Group. In some cases, the Group will provide
bank guarantees to customers when entering into large
fixed price contracts. As at 31.12.12, the guarantees totalled
38,645.
A tax withholding guarantee of 39,000 has also been provided
to the Bergen tax office as at 31.12.12
The group has warranty liabilities relating to maintenance
contracts. Warranty periods may last for up to three years
after an annual programme has been completed. New-build
offshore installations / structures are generally subject to a
2-year warranty once a completion certificate has been issued.
Guarantee liabilities are assessed continuously per individual
project that has guarantees provided. However, it is
difficult to estimate the probability that a warranty claim
will arise per project and how much cost this would entail.
There are therefore also made an assessment of the overall
uncertainty on group level (IAS 37.24)
A provision for for warranty liabilities has been made of
3,500 as at 31.12.2012. Corresponding amount at 31.12.11 was
3,500.
Incurred warranty costs in 2012 was 1,539. The corresponding
amount for 2011 was 1,375.
64
Beerenberg CORP. AS Group group accounts 2012