13 May, 2021

Norway’s sovereign fund rejects broader role for remuneration committees

Norges Bank Investment Management says a division of responsibilities means remuneration committees should not be overseeing company-wide pay.

Calm waters: Statoil's "Troll A" oil platform in Norwegian waters. Photo: Troll A, Oil Platform, Norway by Harald Pettersen for Statoil.

Norway's sovereign wealth fund has rejected the idea that remuneration committees should oversee pay across all employees in a company rather than only the board. Norges Bank Investment Management (NBIM) made the remarks to the Financial Reporting Council (FRC) in a letter responding to a consultation on a revision of the UK's corporate governance code. NBIM said that a belief in the "differing" roles of board and management meant that employee pay should remain an operational issue. NBIM said: "...we note that some of the proposed changes may blur the division of responsibilities, in particular having the remuneration committee of t

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equity, finance, FRC, Norges Bank Investment Management, remuneration committee, Statoil, UK Corporate Governance Code