Annual report 2008 - Comrod

CONT. NOTE 28 RELATED PARTY TRANSACTIONSThe CEO and chairman of the board do not have an agreement relating to termination benefits. Group management participatein the company’s general pension arrangements, which are described in Note 20, Pensions. No loans have been made, orsecurity provided for loans, to any member of group management, the board or other elected standing committees. 9 keymanagers in subsidiaries of Comrod Communication ASA received options to subscribe for the company’s shares in 2007.None of these are employees of the parent company. Overview of granted options and the share option programme is given in“note 27 Options to employees”.Shares owned by Management, Board members or related parties 31.12.2008Ole Gunnar Fjelde 15 576Erik Espeset 25 454Niklas Hermansson 1 050Kjell Ove Hatlem (Captura AS) 10 000Merete Alnes Mostue 2 500Tore J. Fjell 64 104Flakk Holding AS 4 545 734Hexagon Composites ASA 4 238 062Flakk, Knut Trygve 193 124Expensed costs to auditors are NOK 949.148 and the split relates to the following(NOK) Expensed costs to auditors 2008 2007Statutory auditing 488 278 627 948Other audit related services 453 441 321 200Pursuant to section 6-16a of the Norwegian Act on Public Limited companies, the Board issue a declaration to the ordinarygeneral meeting regarding salaries and other remuneraction for the CEO and other senior executives.The company’s policy is that the Salary of senior executives should find expression almost entirely in a fixed monthly salarywhich reflects a level appropriate to the position held by the person concerned and normal practice.Pension schemes for senior executives will basically be the same as those provided generally for employees in the business.Bonus schemes for the executive management team will be linked in part to the company’s performance and in part to anassessment based on the board’s judgment. Such judgment will take account in part of the quality of work on health, safetyand the environment in the company, and results measured by the company’s HSE statistics.Bonus schemes for the executive management team will have a ceiling, estimated to be 40 per cent of fixed salary per person.The board is able to offer option schemes to members of the executive management team. These options can be awardedto the people regarded by the board as playing a key role in the development of the company’s value. The board has adoptedan option programme for the group’s key executives in 2007. Senior executives are offered a company car to the extentconsidered to accord with normal practice. This applies at present to five employees.Agreement on early retirement can be reached with senior executives, with the mutual right to require such retirement whenthe person concerned reaches the age of 62. Salary guarantee schemes agreed when senior executives leave the companywill be viewed in relation to clauses related to confidentiality and restrictions on competing activities in the contract ofemployment with the person concerned. Such schemes can only compensate for such restrictions imposed on the personconcerned in taking a new job. Salary guarantee schemes will basically require the deduction of income from other sources.Compensation policy for the previous fiscal year (2008): The compensation policy applied for senior executives in the previousfiscal year accorded with the principles which also apply for 2009. These are specified above.Comrod Communication Group Annual report 2008 65