Remuneration of the Board of Directors

The remuneration of the members of the Board of Directors is determined on a yearly basis by the Ordinary General Meeting. The Directors may also be reimbursed for travelling, hotel and other expenses incurred by them in attending board meetings or in connection with the business of the Company.

Remuneration of the Board of Directors, as proposed by the Nomination Committee and approved by the Ordinary General Meeting, is not linked to the Company’s performance. In addition to the board members elected by the employees, Mr Arne Smedal holds stock options in the Company by virtue of his employment in the Company, which is a deviation from the Code of Practice.

Details of the remuneration to the Board of Directors are disclosed in Note 20 to the Company’s consolidated financial statements, included in the 2012 Annual Report.