Hydro Annual Report 2011b

Name
Base
salary
1) 2)
Maximum
bonus
potential
1) 2)
Salary
1) 3)
Remuneration paid in 2011
In kind
1) 3)
Bonus
1) 3)
Long­term
incentive
plan (LTI)
1) 3)
Pension
benefits
1) 4)
Outstanding
loans
1) 5)
LTIshares
allocated
Hydro
share
ownership 6)
Svein Richard Brandtzæg 5 500 2 750 5 632 225 1 937 1 545 5 667 449 16 454 62 847
Jørgen C. Arentz Rostrup 3 015 1 206 3 075 170 828 725 3 541 ­ 7 564 22 902
Johnny Undeli 6 040 1 236 6 136 215 876 750 2 117 ­ 8 150 13 132
Hilde Aasheim 2 870 1 148 2 962 230 835 690 2 451 ­ 7 048 11 112
Kjetil Ebbesberg 2 560 1 024 2 643 184 766 618 1 534 ­ 6 979 8 033
Oliver Bell 3 962 1 585 3 980 166 1 307 988 1 509 ­ 11 415 14 415
Hans­Joachim Kock 4 880 1 357 5 008 1 457 1 211 497 1 359 ­ 5 825 13 325
Arvid Moss 2 665 1 066 2 705 209 764 644 3 042 ­ 7 136 75 957
Tom Røtjer 2 668 1 067 2 808 178 730 648 3 177 ­ 6 896 29 846
Wenche Agerup 2 570 1 028 2 603 182 645 489 2 785 230 5 100 20 637
1) Amounts in NOK thousand. Amounts paid by subsidiaries outside Norway have been translated to NOK at average exchange rates for 2011.
2) Base salary is per December 31, 2011. Maximum bonus potential is for 2011. Bonus, if any, will be paid in 2012.
FINANCIAL STATEMENTS
Note 11 - Employee and management remuneration F31
3) Salary is the amount paid to the individual during 2011, and includes vacation pay. Remuneration-in-kind is the total of all non-cash related benefits
received by the individual during 2011 and includes such items as the taxable portion of insurance premiums, car and mileage allowances and electronic
communication items. Bonus is the amount paid in 2011 based on performance achieved and bonus potential for 2010, including bonus earned before the
individuals joined the Corporate Management Board. The LTI plan benefit reflects gross (pre-tax) amounts. For corporate management board members on
net salary employment contracts, benefits have been converted to the gross (pre-tax) amounts.
4) The estimated change in the value of pension benefits reflects both the effect of earning an additional year's pension benefit and the adjustment to present
value of previously earned pension rights. It is calculated as the increase in Projected Benefit Obligations (PBO) calculated with stable assumptions. As such,
the number includes both the annual accrual of pension benefits and the interest element related to the total accrued pension benefit. For all individuals listed
in the table, this is the estimated change from January 1, 2011 to December 31, 2011.
5) The loans to corporate management board members, including close familiy members, were extended under an employee benefit scheme applicable to all
employees in Norway. The loans to Svein Richard Brandtzæg have interest rates of 3.75 and 3.9 percent and repayment periods of six and eight years. The
loan to Wenche Agerup has an interest rate of 7.25 percent and a repayment period of two years. Payments have been made in a timely fashion and the
loans are not in default.
6) Hydro share ownership is the number of shares held directly by the corporate management board member and any shares held by close family members
and controlled entities. Hydro share ownership for all corporate management board members is as of December 31, 2011.
Under the long term incentive for 2010 settled in 2011, former corporate management board members Ola Sæter and Odd
Ivar Biller received 3,741 and 2,222 shares with a gross (pre-tax) value of NOK 338 thousand and NOK 196 thousand,
respectively.
Effective March 30, 2009, Eivind Reiten stepped down as President and CEO, and left Hydro. He has a termination
agreement with right to certain benefits (excluding bonus) for a three-year period, beginning March 30, 2009. In 2011, Reiten
received a total remuneration of NOK 6,404 thousand. The estimated change in value of his pension benefits increased by
NOK 3,392 thousand.
United Kingdom employee share-based compensation
In 1988, Hydro established a stock option share purchase program for employees in the United Kingdom. The stock option
purchase program is organized in an independent trust. The trust acquired shares in the market at the time the options were
granted. The last options were granted in July 2002 and the program will be operational until July 2012, when the last
remaining options expire. No further options will be granted.
Each year the employees were given the option to acquire a limited number of shares at a fixed price during a period from the
third to the tenth year from the grant date. The exercise price of the options originally equaled the share price at the time the
options were granted. On October 1, 2007, in connection with the demerger of Hydro's oil and gas business to Statoil, the
value of the options was reduced. The options remain options over Hydro shares only and do not give an option to purchase
the Statoil shares which were issued for each Hydro share to the trust.
At January 1, 2010, 19,813 options were outstanding and the trust's balance of shares was 407,908 Hydro shares and 271,768
Statoil shares. During 2010 no options were exercised and 3,860 options expired. As of December 31, 2010 the trust's balance
of Hydro shares was 423,813 and of Statoil shares was 271,687. There were 15,953 options outstanding as of December 31,
2010, with an average strike price equivalent to NOK 56.34 per share.